Why you should start your Blackwood lease extension

Why you should start your Blackwood lease extension today:

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

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Blackwood. Inevitably, the period of lease remaining shortens over time. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Blackwood have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give due attention before putting off your Blackwood lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension

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

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic as and when you come to market or remortgage your property as it will be practically unmortgageable. Even though you may have no imminent desire to sell but when you do your purchaser will have to hold off for two years before they can exercise the right to a a lease extension.

Why use us for your lease extension in Blackwood?

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

Blackwood Lease Extension Case Summaries:

Edward, Blackwood, Caerphilly

In 2014 Edward, came critically close to the eighty-year mark with the lease on his basement flat in Blackwood. Having purchased his flat two decades ago, the lease term was of no interest. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Edward was able to extend his lease just under the wire last July. Edward and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If the lease had fallen below 80 years, the figure would have increased by a minimum £975.

Blackwood case:

In 2009 we were e-mailed by Dr Leo Stewart who, having took over the lease of a first floor apartment in Blackwood in October 2010. The question was if we could approximate the price could be to prolong the lease by ninety years. Comparable flats in Blackwood with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish on 26 August 2090. Having 64 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including legals.

Blackwood case:

Mr and Mrs. K Morel acquired a basement apartment in Blackwood in July 2012. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical properties in Blackwood with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 billed monthly. The lease ran out in 2079. Taking into account 53 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.