Top reasons for Aberystwyth lease extension

Top reasons for lease extension now:

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

There is no doubt about it a leasehold flat or house in Aberystwyth is a wasting asset as a result of the shortening lease. If the lease has, over 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Aberystwyth will qualify for this right; that being said a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

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

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.

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

Banks and Building Societies have specific criteria when lending monies secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are seeking to remortgage your Aberystwyth property.

Why use us for your lease extension in Aberystwyth?

Irrespective of whether you are a tenant or a landlord in Aberystwyth,the lease extension solicitors 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 Aberystwyth valuers.

Aberystwyth Lease Extension Example Cases:

Daisy, Aberystwyth, Aberaeron,

Following unsuccessful negotiations with the freeholder of her one bedroom flat in Aberystwyth, Daisy commenced the lease extension process as the eighty year mark was fast nearing. The transaction was finalised in March 2008. The landlord’s costs were kept to an absolute minimum.

Aberystwyth case:

Mr and Mrs. W Lee completed a purpose-built flat in Aberystwyth in April 2003. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical residencies in Aberystwyth with a long lease were in the region of £260,200. The average ground rent payable was £65 billed every twelve months. The lease elapsed on 19 March 2092. Considering the 66 years left we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus professional charges.

Aberystwyth case:

Last Spring we were e-mailed by Dr H Moreau , who was assigned a lease of a garden flat in Aberystwyth in January 2007. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Aberystwyth with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed annually. The lease lapsed in 2081. Considering the 55 years outstanding we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.