Main reasons to commence your Heath lease extension

Main reasons to commence your Heath lease extension today:

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

When it comes to long leasehold premises in Heath, 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 lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years left. Residents in Heath with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has under 80 years left, under the current Act the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.

Heath property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.

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

The definition of a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This may be problematic once you need to sell or refinance your flat as it will be effectively unmortgageable. Even though you may have no imminent intention to sell but when you do your purchaser must hold off for two years before being able to exercise the right to a an extension to the lease.

Get in touch with one of our Heath lease extension solicitors or enfranchisement solicitors

Retaining our service gives you enhanced control over the value of your Heath leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Heath Lease Extension Case Summaries:

Felix, Heath, Cardiff,

Felix was the the leasehold owner of a conversion apartment in Heath on the market with a lease of a few days over 72 years left. Felix informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.

Heath case:

In 2009 we were approached by Dr S Petit who, having purchased a first floor flat in Heath in July 1997. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparative premises in Heath with a long lease were valued about £205,000. The mid-range ground rent payable was £50 billed annually. The lease terminated on 26 September 2105. Taking into account 79 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.

Heath case:

Mr and Mrs. N Díaz bought a recently refurbished flat in Heath in June 2007. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Heath with a long lease were valued around £275,000. The mid-range amount of ground rent was £65 collected per annum. The lease ended on 14 June 2094. Considering the 68 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.