Main reasons to commence your Cefn Mawr lease extension

Why you should start your Cefn Mawr lease extension today:

A Cefn Mawr lease depreciates with the years remaining on the lease.

When it comes to long leasehold property in Cefn Mawr, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Cefn Mawr with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has fewer than 80 years outstanding, under the current statute the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold residencies in Cefn Mawr with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders may not issue a mortgage with a short lease

Lenders are making their criteria more stringent and a meaningful number now expect flats to have at least sixty if not seventy years remaining once the mortgage has expired. Considering many flats in Cefn Mawr were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to get a mortgage.

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

The conveyancers that we work with procure Cefn Mawr 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 lawyer we work with provide it.

Cefn Mawr Lease Extension Case Studies:

Samantha, Cefn Mawr, Wrexham,

In the wake of 6 months of unsuccessful negotiations with the landlord of her purpose-built flat in Cefn Mawr, Samantha initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work completed in July 2015. The landlord’s charges were negotiated to below 700 GBP.

Cefn Mawr case:

In 2010 we were approached by Mr Blake Martínez who, having bought a studio apartment in Cefn Mawr in January 2010. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Identical properties in Cefn Mawr with a long lease were valued around £243,000. The mid-range ground rent payable was £65 collected annually. The lease ended on 21 October 2089. Having 63 years left we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.

Cefn Mawr case:

Mr and Mrs. C Johnson owned a ground floor flat in Cefn Mawr in May 2003. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar homes in Cefn Mawr with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced quarterly. The lease ran out on 24 September 2078. Having 52 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus professional charges.