Main reasons to start your Fairwater lease extension

Main reasons to start your Fairwater lease extension today:

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

With a domestic leasehold property in Fairwater, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years left. Anyone in Fairwater with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below 80 years left, under the current Act the landlord can calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold premises in Fairwater with over 100 years outstanding on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not finance a property on a short lease

The trend since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Fairwater?

The lawyers that we work with undertake 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:

Katie, Fairwater, Cardiff,

In the wake of 6 months of unsuccessful correspondence with the landlord of her ground floor apartment in Fairwater, Katie commenced the lease extension process just as the lease was approaching the critical 80-year deadline. The lease extension completed in September 2005. The landlord’s fees were negotiated to less than six hundred GBP.

Fairwater case:

In 2009 we were called by Mr and Mrs. K Adams who, having bought a studio apartment in Fairwater in April 2000. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable premises in Fairwater with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 1 July 2104. Taking into account 78 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.

Fairwater case:

In 2014 we were called by Ms Lauren Lambert who, having moved into a purpose-built flat in Fairwater in March 2007. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable flats in Fairwater with a long lease were valued about £267,600. The average amount of ground rent was £65 billed yearly. The lease lapsed on 4 May 2093. Taking into account 67 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus costs.