Why you should start your Cross Hands lease extension

Main reasons to commence your Cross Hands lease extension today:

Increase your lease and increase your Cross Hands property value

Cross Hands leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Cross Hands tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Cross Hands you should see if your lease has between seventy and ninety years remaining. There are good reasons why a Cross Hands leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may not grant a mortgage on 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 from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this could result in your Cross Hands property being difficult to dispose of or remortgage.

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

Irrespective of whether you are a tenant or a landlord in Cross Hands,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cross Hands valuers.

Cross Hands Lease Extension Example Cases:

Alice, Cross Hands, Ammanford,

Subsequent to unsuccessful correspondence with the freeholder of her purpose-built apartment in Cross Hands, Alice initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The transaction completed in August 2013. The landlord’s costs were kept to an absolute minimum.

Cross Hands case:

Last Spring we were phoned by Mr and Mrs. K Khan , who owned a purpose-built flat in Cross Hands in May 2010. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Cross Hands with 100 year plus lease were in the region of £256,600. The average amount of ground rent was £60 collected annually. The lease lapsed on 19 November 2078. Taking into account 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of professional charges.

Cross Hands case:

In 2013 we were contacted by Mr and Mrs. U Reed who, having bought a studio apartment in Cross Hands in May 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Cross Hands with a long lease were valued around £218,000. The mid-range ground rent payable was £45 collected per annum. The lease ended on 23 July 2089. Taking into account 63 years left we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.