Why you should start your Clydach lease extension

Why you should commence your Clydach lease extension today:

Increase your lease and increase your Clydach property value

Clydach residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.

An extended lease has roughly the same value as a freehold

Leasehold premises in Clydach with more than 100 years unexpired on the lease are often 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 service charges justify it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Most banks and building societies will be unwilling to lend on a lease with less than 70 years left to run - although this varies between mortgage companies. A buyer will likely find it difficult to obtain a mortgage and this could result in your Clydach property being difficult to dispose of or remortgage.

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

Retaining our service will provide you increased control over the value of your Clydach leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Clydach Lease Extension Case Studies:

Felix, Clydach, Swansea,

Felix owned a high value flat in Clydach on the market with a lease of a little over fifty eight years left. Felix on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Clydach case:

In 2012 we were e-mailed by Ms Harriet Roberts who, having was assigned a lease of a ground floor flat in Clydach in July 2010. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable residencies in Clydach with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease finished in 2083. Considering the 57 years remaining we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.

Clydach case:

Mrs U Garcia was assigned a lease of a garden apartment in Clydach in April 2011. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Clydach with a long lease were worth £245,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2094. Given that there were 68 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.