Why you should start your Crickhowell lease extension

Main reasons to commence your Crickhowell lease extension today:

A Crickhowell leasehold property depreciates with the years remaining on the lease.

Crickhowell residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

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

Leasehold residencies in Crickhowell with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may not grant a mortgage with a short lease

Banks and Building Societies have specific criteria when lending monies secured on leasehold property. Some will simply refuse lend at all once the remaining lease term drops under a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are seeking to remortgage your Crickhowell home.

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

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

Crickhowell Lease Extension Example Cases:

Mason, Crickhowell, Powys,

Mason was the the leasehold proprietor of a studio flat in Crickhowell being sold with a lease of just over 61 years unexpired. Mason on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Crickhowell case:

Mr Sam Anderson took over the lease of a basement flat in Crickhowell in November 1995. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparable premises in Crickhowell with an extended lease were worth £280,000. The average amount of ground rent was £55 invoiced monthly. The lease elapsed on 18 January 2104. Taking into account 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.

Crickhowell case:

In 2012 we were contacted by Mr and Mrs. V Garcia who, having purchased a studio flat in Crickhowell in October 2011. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical flats in Crickhowell with a long lease were in the region of £191,000. The average amount of ground rent was £65 billed every twelve months. The lease concluded on 6 April 2084. Having 58 years outstanding we estimated the premium to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of legals.