Why you should commence your Clydach lease extension

Top reasons for lease extension now:

Increase your lease and increase your Clydach property value

When it comes to residential leasehold property in Clydach, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Residents in Clydach with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has fewer than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.

Clydach property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may not issue a mortgage with a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with under 70 years unexpired - although this varies between mortgage companies. A purchaser will no doubt find it difficult in obtaining a mortgage and this will result in your Clydach property becoming difficult to sell or to obtain finance on.

What makes us experts in Clydach lease extensions?

The lawyers that we work with procure Clydach 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.

Clydach Lease Extension Case Studies:

Shannon, Clydach, Swansea,

Subsequent to unsuccessful discussions with the freeholder of her basement flat in Clydach, Shannon commenced the lease extension process as the eighty year threshold was quickly coming. The transaction was concluded in April 2014. The landlord’s charges were negotiated to less than 650 GBP.

Clydach case:

Ms K Flores owned a garden flat in Clydach in November 1995. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical properties in Clydach with a long lease were worth £275,000. The average ground rent payable was £55 collected quarterly. The lease elapsed on 20 June 2102. Having 76 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.

Clydach case:

Dr Riley Lambert bought a basement flat in Clydach in March 1995. The question was if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Clydach with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 billed yearly. The lease concluded on 16 January 2082. Having 56 years outstanding we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 not including costs.