Solva leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Solva tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Solva you would be well advised to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Solva can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Solva lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the freeholder of her leasehold apartment in Solva, Katherine started the lease extension process as the 80 year deadline was quickly nearing. The legal work was concluded in May 2010. The landlord’s costs were restricted to under 650 pounds.
In 2009 we were phoned by Dr Lauren Bell who, having bought a newly refurbished flat in Solva in January 2005. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Solva with 100 year plus lease were valued around £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease expiry date was on 7 June 2084. Having 58 years outstanding we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
In 2012 we were called by Dr A Rose who, having moved into a purpose-built apartment in Solva in February 2008. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative homes in Solva with an extended lease were valued around £205,000. The average ground rent payable was £50 billed annually. The lease elapsed on 20 May 2104. Taking into account 78 years outstanding we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.