When it comes to long leasehold premises in Solva, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years left. Anyone in Solva with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has less than 80 years outstanding, under the current Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Solva with over one hundred years remaining on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Solva leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Rory owned a high value flat in Solva on the market with a lease of fraction over 61 years outstanding. Rory informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2012 we were contacted by Mr and Mrs. E Wood who, having acquired a one bedroom apartment in Solva in February 1995. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative properties in Solva with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease elapsed in 2088. Considering the 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of fees.
Last Autumn we were called by Mr and Mrs. P Cox , who moved into a first floor apartment in Solva in October 1999. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar residencies in Solva with an extended lease were in the region of £181,600. The average amount of ground rent was £55 collected monthly. The lease concluded on 6 July 2077. Taking into account 52 years remaining we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.