Why you should commence your Barry Island lease extension

Why you should start your Barry Island lease extension today:

Increase your lease and increase your Barry Island property value

As the the remaining lease term of a Barry Island domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Barry Island will qualify for this right; nevertheless a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Barry Island with over one hundred years remaining 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may not lend on a short lease

Most high street banks are tightening their criteria and many now want flats to have a minimum of sixty if not seventy years left at the end of the mortgage. Given that plenty of flats in Barry Island were created in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

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

Irrespective of whether you are a tenant or a freeholder in Barry Island,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barry Island valuers.

Barry Island Lease Extension Example Cases:

Omar, Barry Island, Vale Of Glamorgan

Half a year ago Omar, started to get close to the eighty-year mark with the lease on his studio flat in Barry Island. In buying his home two decades ago, the lease term was of minimal importance. Fortunately, he recognised he needed to take action soon on a lease extension. Omar was able to extend his lease just in the nick of time in August. Omar and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he not met the deadline, the price would have escalated by at least £1,100.

Barry Island case:

In 2011 we were phoned by Mr and Mrs. R Jones who, having took over the lease of a recently refurbished flat in Barry Island in March 1995. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparable premises in Barry Island with a long lease were valued around £255,000. The mid-range ground rent payable was £50 collected monthly. The lease end date was in 2096. Taking into account 70 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.

Barry Island case:

In 2011 we were approached by Mr and Mrs. P Gray who, having moved into a one bedroom apartment in Barry Island in July 2001. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable flats in Barry Island with 100 year plus lease were valued about £246,800. The average amount of ground rent was £60 collected yearly. The lease terminated on 22 June 2076. Given that there were 50 years as a residual term we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of professional charges.