Top reasons for Tregaron lease extension

Top reasons for lease extension now:

Increase your lease and increase your Tregaron property value

For anyone whose Tregaron flat is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold properties in Tregaron with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 maintenance charges justify it.

Lending institutions may decide not to finance a property with a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

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

Tregaron Lease Extension Example Cases:

Kai, Tregaron, Aberaeron

Two years ago Kai, started to get close to the eighty-year mark with the lease on his first floor apartment in Tregaron. In buying his home twenty years ago, the unexpired term was of little significance. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Kai was able to extend his lease just ahead of time last September. Kai and the freeholder via the management company eventually settled on the final figure of £5,500 . If the lease had slid lower than 80 years, the figure would have increased by a minimum £1,000.

Tregaron case:

Last Autumn we were phoned by Mr and Mrs. O Jackson , who acquired a garden flat in Tregaron in August 2004. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical flats in Tregaron with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 collected yearly. The lease expired in 2086. Having 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus costs.

Tregaron case:

Mr H Moreau took over the lease of a purpose-built apartment in Tregaron in September 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar premises in Tregaron with an extended lease were worth £255,000. The average ground rent payable was £50 invoiced monthly. The lease end date was in 2097. Considering the 71 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.