Why you should commence your Cardigan lease extension

Why you should start your Cardigan lease extension today:

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

With a domestic leasehold premises in Cardigan, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years left. Anyone in Cardigan with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the relevant legislation the landlord can calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold premises in Cardigan with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to lend with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 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.

What makes us experts in Cardigan lease extensions?

Using our service gives you enhanced control over the value of your Cardigan leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Cardigan Lease Extension Example Cases:

Jennifer, Cardigan, Aberaeron,

Subsequent to lengthy discussions with the freeholder of her basement apartment in Cardigan, Jennifer initiated the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension completed in November 2015. The freeholder’s fees were restricted to approximately 450 GBP.

Cardigan case:

Last November we were approach by Mr David Flores , who was assigned a lease of a newly refurbished apartment in Cardigan in September 2009. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Cardigan with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease elapsed on 25 January 2086. Having 60 years left we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus costs.

Cardigan case:

Last Summer we were approach by Mr and Mrs. A Gray , who purchased a one bedroom flat in Cardigan in February 2006. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar flats in Cardigan with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease elapsed on 6 May 2097. Considering the 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.