Why you should commence your Heath lease extension

Why you should commence your Heath lease extension today:

A Heath lease depreciates with the years remaining on the lease.

With a long leasehold premises in Heath, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years left. Anyone in Heath with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has fewer than 80 years left, under the relevant legislation the landlord can calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.

Heath property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.

Lenders may decide not to grant a mortgage on a short lease

Most mortgage lenders will not grant a mortgage on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Heath property being difficult to dispose of or to obtain finance on.

What makes us experts in Heath lease extensions?

Regardless of whether you are a tenant or a landlord in Heath,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heath valuers.

Heath Lease Extension Example Cases:

Kian, Heath, Cardiff,

Kian owned a conversion apartment in Heath being sold with a lease of just over sixty years remaining. Kian informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.

Heath case:

In 2013 we were approached by Dr A Robinson who, having completed a basement flat in Heath in November 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Heath with a long lease were worth £223,400. The average ground rent payable was £60 collected every twelve months. The lease lapsed in 2085. Having 59 years left we approximated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus costs.

Heath case:

Last Autumn we were called by Mr P Ramírez , who was assigned a lease of a purpose-built apartment in Heath in March 1998. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative residencies in Heath with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 collected monthly. The lease ended on 24 January 2105. Given that there were 79 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.