Solva leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Solva will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Solva with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Solva leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad owned a studio apartment in Solva being marketed with a lease of a little over 59 years remaining. Muhammad informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last month we were approach by Mrs N Ward , who owned a ground floor flat in Solva in September 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Solva with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed in 2091. Considering the 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus fees.
Ms V Sánchez was assigned a lease of a one bedroom flat in Solva in January 2012. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparative premises in Solva with an extended lease were in the region of £191,400. The average amount of ground rent was £55 billed yearly. The lease terminated on 24 February 2080. Taking into account 54 years outstanding we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 plus expenses.