Why you should commence your Caerwent lease extension

Why you should start your Caerwent lease extension today:

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

As the length of the unexpired term of a Caerwent domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Caerwent will qualify for this right; however a conveyancing solicitor should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may not loan monies with a short lease

Many banks and building societies require a lengthy amount of time left on any leasehold property before they will consider it as adequate security. Even if you don't need a mortgage, you should be mindful that it is likely that someone wanting to purchase your property in the future might well do, so where they are unable to secure a mortgage, then the market price of the property will likely suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

What makes us experts in Caerwent lease extensions?

Using our service gives you better control over the value of your Caerwent leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Caerwent Lease Extension Example Cases:

Mason, Caerwent, Monmouthshire

In recent months Mason, started to get close to the 80-year mark with the lease on his first floor apartment in Caerwent. Having purchased his home two decades ago, the length of the lease was of minimal bearing. Thankfully, he noticed he needed to take action soon on a lease extension. Mason extended the lease just under the wire in March. Mason and the freeholder subsequently agreed on a premium of £5,000 . If the lease had fallen lower than eighty years, the price would have gone up by at least £975.

Caerwent case:

Mr and Mrs. Y Khan moved into a first floor flat in Caerwent in April 1999. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar properties in Caerwent with a long lease were valued around £240,600. The mid-range ground rent payable was £60 collected yearly. The lease elapsed in 2088. Considering the 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of expenses.

Caerwent case:

Mr and Mrs. G Torres bought a first floor apartment in Caerwent in October 2003. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Caerwent with a long lease were valued about £174,200. The average ground rent payable was £55 invoiced quarterly. The lease lapsed on 16 May 2077. Given that there were 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.