Unfortunately that a Caersws residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Caersws property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Caersws will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Caersws with over 100 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society | |
| Yorkshire Building Society |
Using our service gives you increased control over the value of your Caersws leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her studio apartment in Caersws, Lucy initiated the lease extension process as the 80 year deadline was quickly approaching. The legal work was concluded in March 2013. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. D Collins , who bought a purpose-built apartment in Caersws in November 2009. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative homes in Caersws with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected annually. The lease ended in 2081. Given that there were 55 years unexpired we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
Last Autumn we were phoned by Ms T Ramírez , who acquired a purpose-built flat in Caersws in August 2011. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparable residencies in Caersws with a long lease were worth £295,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed on 19 September 2101. Taking into account 75 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.