There is no doubt about it a leasehold flat or house in St Davids is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in St Davids will qualify for this right; that being said a conveyancer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in St Davids with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in St Davids,the lease extension experts 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 Davids valuers.
Last Summer Archie, started to get close to the 80-year threshold with the lease on his basement flat in St Davids. In buying his home two decades ago, the lease term was of little bearing. Luckily, he noticed he needed to take action soon on a lease extension. Archie extended the lease just ahead of time in January. Archie and the freeholder eventually settled on an amount of £5,500 . If the lease had slid to less than 80 years, the amount would have increased by a minimum £925.
Last Christmas we were called by Mr Joshua Lefèvre , who purchased a studio flat in St Davids in January 2009. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Comparable properties in St Davids with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 billed monthly. The lease ran out in 2096. Considering the 70 years outstanding we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2011 we were e-mailed by Mr and Mrs. M Lefèvre who, having acquired a garden apartment in St Davids in March 2000. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar flats in St Davids with an extended lease were valued around £223,400. The average ground rent payable was £60 invoiced per annum. The lease concluded in 2085. Considering the 59 years remaining we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including professional charges.