The re-sale value of a leasehold property in St Athan is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the 80 year cut off point. Current legislation enables St Athan qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in St Athan,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Athan valuers.
During the course of the last few months Alex, started to get close to the eighty-year mark with the lease on his ground floor apartment in St Athan. Having bought his home 19 years previously, the length of the lease was of no bearing. Luckily, he realised he would soon be paying way over the odds for a lease extension. Alex arranged for a lease extension just in the nick of time in March. Alex and the freeholder via the management company subsequently agreed on an amount of £6,000 . If the lease had descended to less than 80 years, the sum would have become more costly by at least £1,000.
In 2014 we were phoned by Mr and Mrs. T Williams who, having moved into a ground floor apartment in St Athan in March 2004. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in St Athan with a long lease were worth £193,400. The average amount of ground rent was £65 billed quarterly. The lease concluded on 26 January 2085. Considering the 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.
Last Autumn we were called by Mr and Mrs. G Ramírez , who bought a recently refurbished apartment in St Athan in July 2002. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative properties in St Athan with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed in 2096. Having 70 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.