Why you should commence your Dinas Powys lease extension

Main reasons to start your Dinas Powys lease extension today:

A Dinas Powys lease depreciates with the years remaining on the lease.

When it comes to long leasehold property in Dinas Powys, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Residents in Dinas Powys with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under eighty years remaining, under the current statute the freeholder can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.

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

Leasehold residencies in Dinas Powys with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions may not grant a mortgage with a short lease

Many banks and building societies will not lend on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will likely encounter difficulties to obtain a mortgage and this will result in your Dinas Powys property becoming difficult to sell or to obtain finance on.

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

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

Dinas Powys Lease Extension Case Studies:

Jasmine, Dinas Powys, Vale Of Glamorgan,

Off the back of lengthy negotiations with the landlord of her purpose-built flat in Dinas Powys, Jasmine commenced the lease extension process as the eighty year mark was swiftly coming. The transaction was concluded in October 2006. The landlord’s costs were kept to an absolute minimum.

Dinas Powys case:

In 2010 we were phoned by Ms Abigail Roux who, having bought a ground floor flat in Dinas Powys in April 2007. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Dinas Powys with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected every twelve months. The lease expired in 2099. Having 73 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.

Dinas Powys case:

In 2013 we were e-mailed by Dr Arthur Flores who, having was assigned a lease of a studio apartment in Dinas Powys in June 2011. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Dinas Powys with a long lease were valued about £240,600. The mid-range ground rent payable was £60 collected annually. The lease elapsed on 22 June 2088. Given that there were 62 years unexpired we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.