Why you should commence your Adamsdown lease extension

Top reasons for lease extension now:

Increase your lease and increase your Adamsdown property value

Chances are that if you own a flat in Adamsdown you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to grant a mortgage on a short lease

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past lenders were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

The lawyers that we work with undertake Adamsdown 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 lawyer we work with provide it.

Adamsdown Lease Extension Example Cases:

Leo, Adamsdown, Cardiff,

Leo owned a studio apartment in Adamsdown on the market with a lease of fraction over 59 years outstanding. Leo informally spoke with his freeholder being a well known local-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 an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.

Adamsdown case:

Mr and Mrs. I Rivera owned a basement apartment in Adamsdown in November 1999. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable flats in Adamsdown with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 collected yearly. The lease ran out on 1 February 2095. Having 69 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.

Adamsdown case:

Mr G Moore took over the lease of a one bedroom flat in Adamsdown in September 1996. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Adamsdown with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 collected annually. The lease terminated in 2106. Taking into account 80 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.