Main reasons to commence your Cross Hands lease extension

Why you should start your Cross Hands lease extension today:

A Cross Hands lease depreciates with the years remaining on the lease.

When it comes to domestic leasehold property in Cross Hands, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years remaining. Anyone in Cross Hands with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has under 80 years outstanding, under the current legislation the landlord can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold residencies in Cross Hands with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may not lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This may cause difficulties as and when you come to market or remortgage your flat as it will be practically unmortgageable. You may not have an immediate plan to sell but when you do your purchaser must hold off for 2 years before being able to exercise the right to a an extension to the lease.

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

Lease extensions in Cross Hands can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Cross Hands lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Cross Hands Lease Extension Case Summaries:

Toby, Cross Hands, Ammanford,

Toby was the the leasehold owner of a studio apartment in Cross Hands being sold with a lease of just over 59 years left. Toby on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Cross Hands case:

Dr H Watson bought a basement flat in Cross Hands in October 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Cross Hands with an extended lease were in the region of £200,800. The average amount of ground rent was £65 collected annually. The lease ended on 8 January 2086. Considering the 60 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.

Cross Hands case:

In 2012 we were e-mailed by Ms Poppy Alexander who, having took over the lease of a basement apartment in Cross Hands in April 1996. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Cross Hands with an extended lease were worth £255,000. The mid-range ground rent payable was £50 collected per annum. The lease finished in 2097. Considering the 71 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.