Creigiau leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Creigiau tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Creigiau you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Creigiau with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| Virgin |
The conveyancers that we work with handle Creigiau 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 conveyancer we work with provide it.
Two years ago Joshua, started to get near to the 80-year threshold with the lease on his garden flat in Creigiau. In buying his property two decades ago, the length of the lease was of no interest. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Joshua extended the lease just ahead of time in August. Joshua and the freeholder eventually agreed on sum of £6,000 . If he not met the deadline, the price would have increased by a minimum £1,125.
Last September we were phoned by Mr Kian Torres , who purchased a newly refurbished apartment in Creigiau in January 2007. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar properties in Creigiau with 100 year plus lease were valued about £173,800. The mid-range ground rent payable was £65 collected yearly. The lease expired on 22 May 2081. Given that there were 55 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.
In 2011 we were called by Mrs A Cooper who, having moved into a studio flat in Creigiau in June 2012. We are asked if we could approximate the premium could be to extend the lease by 90 years. Identical homes in Creigiau with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 6 April 2092. Considering the 66 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.