Top reasons for Cwmcarn lease extension

Why you should commence your Cwmcarn lease extension today:

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

For those whose Cwmcarn home is held on a long lease, the message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.

Cwmcarn property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Cwmcarn with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to lend on a short lease

Mortgage companies are tightening their criteria and many now expect flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. As a number of flats in Cwmcarn were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to obtain a mortgage.

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

Retaining our service will provide you better control over the value of your Cwmcarn leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Cwmcarn Lease Extension Case Summaries:

Oscar, Cwmcarn, Caerphilly,

Oscar owned a 2 bedroom flat in Cwmcarn on the market with a lease of fraction over 59 years outstanding. Oscar informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.

Cwmcarn case:

Mr and Mrs. O Morris bought a garden flat in Cwmcarn in May 2005. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar homes in Cwmcarn with a long lease were valued around £257,800. The average amount of ground rent was £65 billed per annum. The lease ran out on 12 June 2091. Having 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including legals.

Cwmcarn case:

Mr and Mrs. F Girard owned a newly refurbished apartment in Cwmcarn in August 2000. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical residencies in Cwmcarn with 100 year plus lease were valued around £191,400. The mid-range ground rent payable was £55 invoiced monthly. The lease expiry date was on 23 October 2080. Having 54 years remaining we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of professional charges.