Why you should start your Fairwater lease extension

Main reasons to start your Fairwater lease extension today:

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

The market value of a leasehold property in Fairwater is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be addressed in advance of the eighty year threshold. Leasehold Reform legislation entitles Fairwater qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This will be problematic when you come to dispose of or refinance your flat as it will be effectively unmortgageable. Even though you might have no imminent plan to sell but when you do your buyer will need to hold off for a couple of years before they can commence the legal procedures for an extension to the lease.

What makes us experts in Fairwater lease extensions?

Lease extensions in Fairwater can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.

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 in-depth market knowledge procuring 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 Case Summaries:

Amber, Fairwater, Cardiff,

In the wake of 6 months of lengthy correspondence with the landlord of her basement flat in Fairwater, Amber commenced the lease extension process as the eighty year threshold was fast coming. The transaction was finalised in September 2005. The landlord’s charges were kept to an absolute minimum.

Fairwater case:

In 2011 we were e-mailed by Ms T Bell who, having purchased a newly refurbished apartment in Fairwater in May 1997. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable premises in Fairwater with a long lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ran out in 2077. Having 51 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.

Fairwater case:

Mrs Daisy Scott acquired a garden flat in Fairwater in July 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Fairwater with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed per annum. The lease elapsed on 22 September 2097. Taking into account 71 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.