Top reasons for Cowbridge lease extension

Main reasons to start your Cowbridge lease extension today:

Increase your lease and increase your Cowbridge property value

The closer a domestic lease in Cowbridge gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 100 years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Cowbridge will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Cowbridge with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may decide not to finance a property with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past mortgage companies would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

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

Cowbridge Lease Extension Example Cases:

Georgina, Cowbridge, Vale Of Glamorgan,

Off the back of lengthy correspondence with the landlord of her basement flat in Cowbridge, Georgina started the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension was concluded in May 2015. The freeholder’s charges were kept to an absolute minimum.

Cowbridge case:

Last year we were called by Mr Daniel Phillips , who bought a one bedroom apartment in Cowbridge in August 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Cowbridge with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected quarterly. The lease finished on 11 July 2086. Having 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including professional charges.

Cowbridge case:

Mr and Mrs. W Mitchell took over the lease of a studio apartment in Cowbridge in November 1998. The question was if we could estimate the price could be for a 90 year extension to my lease. Similar flats in Cowbridge with a long lease were worth £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired on 19 August 2097. Given that there were 71 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.