Why you should commence your Blaina lease extension

Main reasons to start your Blaina lease extension today:

A Blaina lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a Blaina domestic lease lessens so does its value and therefore the value of your property. If the lease has, over 125 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Blaina will qualify for this right; nevertheless a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Blaina with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders may not loan monies with a short lease

Nearly all banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should be mindful that it is likely that someone wishing to buy your property in the future might well do, so in the event that they can't obtain a mortgage, then the financial worth of the property will likely be adversely impacted. In the last decade many banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

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

Irrespective of whether you are a tenant or a landlord in Blaina,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 Blaina valuers.

Blaina Lease Extension Example Cases:

Rachel, Blaina, Blaenau Gwent,

Following protracted negotiations with the landlord of her ground floor apartment in Blaina, Rachel initiated the lease extension process as the eighty year threshold was rapidly coming. The lease extension was finalised in April 2014. The landlord’s fees were kept to an absolute minimum.

Blaina case:

Last year we were e-mailed by Dr F Murphy , who completed a purpose-built apartment in Blaina in October 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Blaina with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 billed per annum. The lease ended in 2102. Taking into account 76 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.

Blaina case:

Last Autumn we were phoned by Mr Eli Phillips , who purchased a studio apartment in Blaina in July 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar properties in Blaina with a long lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease ended in 2091. Taking into account 65 years remaining we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of costs.