Top reasons for Fairwater lease extension

Why you should commence your Fairwater lease extension today:

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

Fairwater leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Fairwater residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Fairwater you really ought to investigate if your lease has between 70 and 90 years left. There are good reasons why a Fairwater leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay

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

Leasehold residencies in Fairwater with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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.

Banks and Building Societies will not issue a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Fairwater lease extensions?

Lease extensions in Fairwater 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 Fairwater lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Fairwater Lease Extension Example Cases:

Alfie, Fairwater, Cardiff

Twenty four months ago Alfie, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Fairwater. In buying his property two decades ago, the length of the lease was of minimal relevance. As luck would have it, he realised he would soon be paying way over the odds for Extending the lease. Alfie arranged for a lease extension just under the wire last March. Alfie and the freeholder eventually agreed on a premium of £5,500 . If he not met the deadline, the sum would have increased by at least £975.

Fairwater case:

Mr and Mrs. L Reed moved into a first floor flat in Fairwater in April 2011. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Fairwater with a long lease were worth £223,400. The mid-range ground rent payable was £60 billed annually. The lease elapsed in 2085. Taking into account 59 years left we approximated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 not including professional charges.

Fairwater case:

Mr and Mrs. W Patel moved into a basement apartment in Fairwater in January 2005. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative residencies in Fairwater with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 8 September 2105. Taking into account 79 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.