Splott leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Splott will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Santander |
Engaging our service will provide you increased control over the value of your Splott leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ollie, started to get close to the eighty-year mark with the lease on his ground floor apartment in Splott. In buying his property 19 years previously, the unexpired term was of no importance. by good luck, he recognised he needed to take steps soon on Extending the lease. Ollie was able to extend his lease just ahead of time last August. Ollie and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If he not met the deadline, the figure would have increased by at least £900.
Mr and Mrs. F Jackson acquired a ground floor apartment in Splott in August 2008. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Splott with 100 year plus lease were worth £275,000. The average ground rent payable was £45 billed quarterly. The lease finished on 23 January 2095. Given that there were 69 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Last Autumn we were called by Dr Edward Hall , who bought a basement apartment in Splott in February 2003. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Splott with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease finished on 17 October 2084. Having 58 years left we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.