Main reasons to commence your Hirwaun lease extension

Why you should commence your Hirwaun lease extension today:

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

The market value of a leasehold property in Hirwaun depends on how long the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed ahead of the 80 year mark. Current legislation enables Hirwaun qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Hirwaun with in excess of one hundred years outstanding 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

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

Lenders are inclined not grant a mortgage on short residential leases. You are likely to encounter difficulties where you wish to sell your flat in Hirwaun if the remaining lease term is under the criteria set by the majority of banks and building societies. Different lenders have varying criteria but generally theyrequire a minimum remaining lease term of 65 years.

Why use us for your lease extension in Hirwaun?

Regardless of whether you are a tenant or a freeholder in Hirwaun,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hirwaun valuers.

Hirwaun Lease Extension Example Cases:

Matthew, Hirwaun, Abercynon

In recent months Matthew, started to get near to the 80-year mark with the lease on his purpose- built flat in Hirwaun. Having bought his home twenty years previously, the length of the lease was of little importance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Matthew extended the lease just ahead of time in July. Matthew and the landlord who owned the flat above eventually settled on a premium of £5,000 . If the lease had dropped below eighty years, the figure would have escalated by at least £1,125.

Hirwaun case:

Mr Alfie Brown owned a first floor apartment in Hirwaun in May 1996. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in Hirwaun with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish on 25 September 2097. Taking into account 71 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.

Hirwaun case:

Mr Freddie Vincent purchased a first floor apartment in Hirwaun in May 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Hirwaun with a long lease were valued about £246,800. The average amount of ground rent was £60 invoiced annually. The lease lapsed on 4 February 2076. Considering the 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including fees.