Why you should start your Creigiau lease extension

Why you should commence your Creigiau lease extension today:

A Creigiau lease depreciates with the years remaining on the lease.

Creigiau leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Creigiau tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Creigiau you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Creigiau property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders may not lend with a short lease

Lending institutions have set criteria when lending funds secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant if you are intending to refinance your Creigiau home.

What makes us experts in Creigiau lease extensions?

Retaining our service will provide you better control over the value of your Creigiau leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Creigiau Lease Extension Case Summaries:

Nathaniel, Creigiau, Cardiff,

Nathaniel owned a high value apartment in Creigiau being sold with a lease of a few days over sixty years outstanding. Nathaniel on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel obtained expert legal guidance and secured satisfactory deal informally and readily saleable.

Creigiau case:

In 2012 we were e-mailed by Mr and Mrs. M Turner who, having purchased a studio flat in Creigiau in May 2008. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparative residencies in Creigiau with a long lease were worth £242,600. The average ground rent payable was £45 invoiced monthly. The lease ended on 2 July 2093. Considering the 67 years left we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including professional charges.

Creigiau case:

Mrs J Moreau moved into a one bedroom flat in Creigiau in August 2010. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar residencies in Creigiau with a long lease were in the region of £280,000. The average amount of ground rent was £55 billed every twelve months. The lease expired on 21 March 2104. Considering the 78 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.