Why you should start your Cathays lease extension

Main reasons to start your Cathays lease extension today:

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

Cathays leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Cathays tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Cathays you really ought to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Cathays flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay

Cathays property with a lease extension is almost 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 approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to finance a property on a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

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

Cathays Lease Extension Case Studies:

Ollie, Cathays, Cardiff

Last year Ollie, came critically close to the eighty-year threshold with the lease on his one bedroom apartment in Cathays. In buying his flat twenty years ago, the length of the lease was of minimal bearing. Fortunately, he realised he would imminently be paying way over the odds for Extending the lease. Ollie arranged for a lease extension just in the nick of time last September. Ollie and the freeholder via the management company in the end agreed on an amount of £5,500 . If the lease had fallen below eighty years, the amount would have gone up by at least £875.

Cathays case:

In 2012 we were e-mailed by Mr and Mrs. E Vincent who, having was assigned a lease of a purpose-built apartment in Cathays in September 2002. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable flats in Cathays with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed in 2101. Considering the 75 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.

Cathays case:

Last month we were called by Dr Ryan Gunderson , who was assigned a lease of a studio flat in Cathays in February 2005. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar flats in Cathays with 100 year plus lease were in the region of £168,800. The average ground rent payable was £60 invoiced monthly. The lease terminated in 2081. Taking into account 55 years unexpired we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.