Top reasons for Cardigan lease extension

Top reasons for lease extension now:

Increase your lease and increase your Cardigan property value

Cardigan leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Leasehold owners in Cardigan will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s wise to be guided by a conveyancer during the process.

Cardigan property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.

Lending institutions may not lend on a short lease

Most banks and building societies will not lend on a lease with less than 70 years left to run - although this varies between mortgage companies. A purchaser will no doubt find it difficult in obtaining a mortgage and this could result in your Cardigan property becoming difficult to dispose of or to obtain finance on.

Get in touch with one of our Cardigan lease extension solicitors or enfranchisement solicitors

Lease extensions in Cardigan can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Cardigan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Cardigan Lease Extension Case Studies:

Lauren, Cardigan, Aberaeron,

After protracted discussions with the freeholder of her studio flat in Cardigan, Lauren started the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was finalised in June 2006. The landlord’s fees were negotiated to less than 600 pounds.

Cardigan case:

Mrs Lucy López moved into a recently refurbished flat in Cardigan in February 1995. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative premises in Cardigan with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 collected yearly. The lease elapsed in 2085. Having 59 years as a residual term we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.

Cardigan case:

In 2009 we were phoned by Mr O Evans who, having was assigned a lease of a recently refurbished apartment in Cardigan in February 1999. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Cardigan with a long lease were valued about £255,000. The average amount of ground rent was £50 collected monthly. The lease finished in 2096. Considering the 70 years left we calculated the premium to the landlord for the lease extension to be between £10,500 and £12,000 plus costs.