Why you should commence your Canton lease extension

Main reasons to start your Canton lease extension today:

Increase your lease and increase your Canton property value

Canton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Canton tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Canton you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a Canton flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay

Canton property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not lend with 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 jittery at around 75 years. This will cause difficulties as and when you wish to dispose of or remortgage your flat as it will be practically unmortgageable. Even though you might have no immediate intention to sell but when you do your buyer will need to wait a couple of years before they can start the legal procedures for a lease extension.

What makes us experts in Canton lease extensions?

The lawyers that we work with handle Canton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Canton Lease Extension Case Studies:

Reuben, Canton, Cardiff

In 2014 Reuben, started to get near to the eighty-year threshold with the lease on his ground floor flat in Canton. Having bought his property 18 years previously, the lease term was of minimal significance. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Reuben extended the lease just under the wire in April. Reuben and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he not met the deadline, the price would have gone up by a minimum £975.

Canton case:

In 2012 we were e-mailed by Ms O Leroy who, having took over the lease of a garden apartment in Canton in September 2009. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Canton with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed in 2098. Given that there were 72 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.

Canton case:

Last Spring we were called by Mr and Mrs. P Lefèvre , who owned a one bedroom apartment in Canton in September 2005. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar homes in Canton with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 billed every twelve months. The lease expired on 23 April 2087. Taking into account 61 years left we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus expenses.