Top reasons for Fairwater lease extension

Why you should start your Fairwater lease extension today:

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

The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Fairwater may extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Fairwater lease extension. Putting off the costs now simply escalates the price you will ultimately be required to pay for a lease extension.

Fairwater property with a lease extension is almost the same value as a freehold

Leasehold residencies in Fairwater with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may decide not to finance a property with 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 home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Fairwater lease extensions?

The lawyers that we work with procure Fairwater lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Fairwater Lease Extension Case Studies:

Leo, Fairwater, Cardiff

Last Summer Leo, started to get close to the eighty-year threshold with the lease on his garden apartment in Fairwater. Having bought his property two decades ago, the unexpired term was of minimal bearing. Luckily, he realised he would soon be paying way over the odds for a lease extension. Leo was able to extend his lease just ahead of time in April. Leo and the freeholder ultimately agreed on an amount of £6,000 . If the lease had slipped below eighty years, the premium would have gone up by at least £1,050.

Fairwater case:

Last April we were phoned by Mr S Edwards , who purchased a studio apartment in Fairwater in November 1995. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparable premises in Fairwater with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended on 23 January 2103. Given that there were 77 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.

Fairwater case:

Mr and Mrs. J Vincent took over the lease of a garden apartment in Fairwater in June 2001. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Fairwater with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 collected annually. The lease concluded on 21 September 2092. Given that there were 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of legals.