Main reasons to start your Brackla lease extension

Why you should commence your Brackla lease extension today:

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

The re-sale value of a leasehold property in Brackla depends on how long the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised ahead of the eighty year threshold. Leasehold Reform legislation enables Brackla qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage on a short lease

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Brackla?

Regardless of whether you are a tenant or a freeholder in Brackla,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 Brackla valuers.

Brackla Lease Extension Case Summaries:

Andrew, Brackla, Bridgend

Last year Andrew, started to get close to the eighty-year mark with the lease on his leasehold flat in Brackla. In buying his property two decades ago, the lease term was of minimal significance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Andrew was able to extend his lease just under the wire last April. Andrew and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had dipped lower than eighty years, the price would have gone up by at least £900.

Brackla case:

Last year we were called by Ms Ellie Evans , who bought a one bedroom flat in Brackla in May 1999. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Brackla with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2083. Given that there were 57 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.

Brackla case:

Mr Andrew Morgan purchased a studio flat in Brackla in November 1997. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Brackla with an extended lease were in the region of £245,000. The average amount of ground rent was £50 collected quarterly. The lease came to a finish on 15 September 2094. Taking into account 68 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.