Why you should start your Fairwater lease extension

Why you should commence your Fairwater lease extension today:

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

Fairwater leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Fairwater residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Fairwater you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

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

It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to lend with a short lease

The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away 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?

Regardless of whether you are a tenant or a freeholder in Fairwater,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fairwater valuers.

Fairwater Lease Extension Case Studies:

Molly, Fairwater, Cardiff,

After unsuccessful discussions with the freeholder of her purpose-built flat in Fairwater, Molly initiated the lease extension process as the eighty year mark was fast nearing. The transaction was concluded in October 2014. The freeholder’s fees were kept to an absolute minimum.

Fairwater case:

In 2010 we were phoned by Mr Jamie Ward who, having owned a purpose-built apartment in Fairwater in February 2008. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Similar flats in Fairwater with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 invoiced per annum. The lease elapsed in 2081. Having 55 years unexpired we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including professional charges.

Fairwater case:

In 2011 we were called by Mr and Mrs. N Gray who, having purchased a newly refurbished flat in Fairwater in January 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Fairwater with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease terminated in 2101. Given that there were 75 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.