Unfortunately that a Swansea East residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Swansea East property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most flat owners in Swansea East will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Swansea East with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Using our service gives you increased control over the value of your Swansea East leasehold, as your property will be more valuable and marketable in terms of lease length should you decide 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 October Jude, came precariously near to the eighty-year mark with the lease on his leasehold apartment in Swansea East. In buying his home two decades ago, the lease term was of little concern. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. Jude was able to extend his lease at the eleventh hour in April. Jude and the freeholder via the management company subsequently settled on a premium of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £900.
In 2013 we were approached by Mr and Mrs. U Bonnet who, having moved into a recently refurbished apartment in Swansea East in October 2005. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparable homes in Swansea East with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease concluded in 2093. Given that there were 67 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus fees.
In 2011 we were e-mailed by Dr Austin Rodríguez who, having completed a basement apartment in Swansea East in October 2010. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative flats in Swansea East with an extended lease were in the region of £201,200. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 21 September 2082. Taking into account 56 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.