Why you should commence your Grangetown lease extension

Top reasons for lease extension now:

Increase your lease and increase your Grangetown property value

There is no doubt about it a leasehold flat or house in Grangetown is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Grangetown will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

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

Banks and Building Societies may decide not to issue a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements across the board - 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 mortgage companies has increased. In the past mortgage companies were content with twenty 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 Grangetown lease extensions?

Retaining our service gives you increased control over the value of your Grangetown leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Grangetown Lease Extension Case Studies:

Ellie, Grangetown, Cardiff,

Off the back of unsuccessful negotiations with the landlord of her two bedroom flat in Grangetown, Ellie started the lease extension process as the eighty year deadline was fast coming. The lease extension completed in April 2014. The freeholder’s costs were kept to an absolute minimum.

Grangetown case:

Last Autumn we were e-mailed by Dr T Petit , who moved into a studio apartment in Grangetown in June 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Grangetown with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 collected annually. The lease termination date was on 27 October 2089. Given that there were 64 years outstanding we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.

Grangetown case:

Ms Zoe Hall was assigned a lease of a studio flat in Grangetown in June 2003. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Grangetown with a long lease were in the region of £184,000. The mid-range ground rent payable was £55 collected yearly. The lease lapsed in 2078. Considering the 53 years remaining we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.