Main reasons to commence your Fforestfach lease extension

Main reasons to start your Fforestfach lease extension today:

Increase your lease and increase your Fforestfach property value

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Fforestfach have the legal entitlement to extend the lease for an additional 90 years under legislation. Please think carefully before delaying your Fforestfach lease extension. Shelving the costs today simply escalates the premium you will eventually be required to pay to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold properties in Fforestfach with in excess of 100 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lenders will not grant a mortgage with a short lease

Many mortgage companies will not lend on a lease with under seventy years unexpired - although this varies from lender to lender. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Fforestfach property being difficult to dispose of or to obtain finance on.

Get in touch with one of our Fforestfach lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with procure Fforestfach 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 conveyancing solicitor we work with provide it.

Fforestfach Lease Extension Case Studies:

Muhammad, Fforestfach, Swansea,

Muhammad owned a conversion apartment in Fforestfach being sold with a lease of fraction over fifty eight years unexpired. Muhammad informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Fforestfach case:

In 2012 we were phoned by Mr and Mrs. J François who, having owned a garden apartment in Fforestfach in August 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative properties in Fforestfach with a long lease were worth £252,800. The mid-range ground rent payable was £65 billed quarterly. The lease finished in 2091. Considering the 65 years unexpired we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.

Fforestfach case:

Mr and Mrs. H Robinson moved into a ground floor flat in Fforestfach in April 1996. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparative properties in Fforestfach with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 billed yearly. The lease finished in 2080. Taking into account 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus professional charges.