With a residential leasehold property in Swansea East, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years left. Leasehold owners in Swansea East with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has under 80 years outstanding, under the current Act the landlord can calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Swansea East lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Kai was the the leasehold owner of a studio apartment in Swansea East being sold with a lease of a few days over sixty years remaining. Kai informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last Autumn we were phoned by Ms Chelsea King , who owned a recently refurbished apartment in Swansea East in August 2011. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable premises in Swansea East with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish on 1 March 2105. Considering the 79 years unexpired we estimated the premium to the landlord to extend the lease to be within £7,600 and £8,800 plus legals.
In 2014 we were contacted by Mrs Phoebe Pérez who, having took over the lease of a one bedroom apartment in Swansea East in January 2008. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparable residencies in Swansea East with a long lease were in the region of £270,000. The mid-range ground rent payable was £65 billed per annum. The lease elapsed in 2094. Having 68 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.