Main reasons to commence your Danescourt lease extension

Why you should start your Danescourt lease extension today:

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

With a domestic leasehold premises in Danescourt, 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 think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Anyone in Danescourt with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When a lease has fewer than eighty years remaining, under the relevant statute the freeholder can calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Danescourt with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders will not grant a mortgage with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Danescourt lease extensions?

Lease extensions in Danescourt can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 dealing with Danescourt lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Danescourt Lease Extension Case Summaries:

Theo, Danescourt, Cardiff,

Theo was the the leasehold proprietor of a studio apartment in Danescourt on the market with a lease of a little over 59 years unexpired. Theo on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.

Danescourt case:

Last Winter we were contacted by Mr and Mrs. P Cooper , who owned a one bedroom apartment in Danescourt in July 1999. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable flats in Danescourt with an extended lease were valued around £198,800. The average ground rent payable was £55 collected per annum. The lease expired in 2081. Taking into account 55 years left we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including professional charges.

Danescourt case:

Last Spring we were called by Dr K Bernard , who bought a studio apartment in Danescourt in November 2000. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparable properties in Danescourt with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease lapsed on 6 August 2101. Having 75 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.