Welshpool leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Welshpool will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Welshpool with more than 100 years left 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Nationwide Building Society |
Lease extensions in Welshpool can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Welshpool lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold owner of a studio apartment in Welshpool being marketed with a lease of just over 59 years remaining. Lucas informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Lucas to exercise his statutory right. Lucas procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2014 we were approached by Mr and Mrs. S Roberts who, having acquired a purpose-built flat in Welshpool in October 1998. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar flats in Welshpool with an extended lease were valued about £181,600. The average ground rent payable was £55 invoiced annually. The lease elapsed on 19 October 2078. Having 52 years unexpired we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.
Mr and Mrs. K García took over the lease of a basement flat in Welshpool in June 2011. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical premises in Welshpool with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expiry date was on 26 September 2098. Given that there were 72 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.