Why you should start your Llandaff lease extension

Top reasons for lease extension now:

Increase your lease and increase your Llandaff property value

Unfortunately that a Llandaff residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Llandaff property market.Once your lease gets to 85ish years, you need to start thinking about 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 falls below eighty years - otherwise a higher amount will be payable. Most leasehold owners in Llandaff will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

Llandaff 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 remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to loan monies with a short lease

Banks and Building Societies have specific criteria when lending monies charged on leasehold property. Many will simply refuse lend at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than 75 years as adequate security. In addition to this being important when selling, it is also relevant if you are wanting to remortgage your Llandaff home.

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

The conveyancing solicitors that we work with handle Llandaff 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 conveyancer we work with provide it.

Llandaff Lease Extension Case Studies:

Mollie, Llandaff, Cardiff,

After protracted negotiations with the freeholder of her studio apartment in Llandaff, Mollie started the lease extension process as the 80 year mark was swiftly nearing. The legal work was finalised in April 2006. The freeholder’s charges were kept to an absolute minimum.

Llandaff case:

In 2009 we were called by Dr Jordan Richardson who, having acquired a one bedroom flat in Llandaff in August 2001. The question was if we could approximate the price would be for a ninety year lease extension. Comparable residencies in Llandaff with a long lease were valued about £264,000. The average ground rent payable was £60 collected annually. The lease ran out in 2079. Having 53 years left we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of fees.

Llandaff case:

Last Christmas we were e-mailed by Mr and Mrs. J Green , who bought a one bedroom apartment in Llandaff in July 2006. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable flats in Llandaff with an extended lease were valued around £225,400. The average amount of ground rent was £45 collected quarterly. The lease lapsed in 2090. Having 64 years outstanding we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including legals.