Main reasons to commence your Pencoed lease extension

Main reasons to commence your Pencoed lease extension today:

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

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Pencoed may extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Pencoed lease extension. Postponing that expense now simply escalates the amount you will eventually be required to pay to extend the lease.

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

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not lend with a short lease

Most high street banks are tightening their criteria and many now expect flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. Given that plenty of flats in Pencoed were built in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

Why use us for your lease extension in Pencoed?

Lease extensions in Pencoed can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

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 Pencoed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Pencoed Lease Extension Case Summaries:

Cameron, Pencoed, Bridgend,

Cameron owned a high value flat in Pencoed being marketed with a lease of a few days over 72 years unexpired. Cameron on an informal basis spoke with his landlord being 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 on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert legal guidance and secured satisfactory deal informally and sell the flat.

Pencoed case:

Last month we were phoned by Mrs Harriet Alexander , who moved into a first floor flat in Pencoed in June 2009. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Pencoed with 100 year plus lease were in the region of £181,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease finished on 3 February 2082. Considering the 56 years outstanding we estimated the premium to the landlord to extend the lease to be within £29,500 and £34,000 plus fees.

Pencoed case:

Mr and Mrs. E Adams moved into a studio flat in Pencoed in March 1999. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar properties in Pencoed with a long lease were valued around £242,600. The average ground rent payable was £45 collected annually. The lease ended on 7 October 2093. Given that there were 67 years left we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.