Main reasons to commence your Kilgetty lease extension

Why you should start your Kilgetty lease extension today:

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

The market value of a leasehold property in Kilgetty is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed prior to the eighty year mark. Statute enables Kilgetty qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions may not lend with a short lease

The trend since the credit crunch 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 granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Kilgetty?

Retaining our service will provide you enhanced control over the value of your Kilgetty 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.

Kilgetty Lease Extension Case Summaries:

Milo, Kilgetty, Pembrokeshire

Half a year ago Milo, came precariously near to the eighty-year threshold with the lease on his basement apartment in Kilgetty. In buying his flat twenty years ago, the length of the lease was of no relevance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Milo arranged for a lease extension just under the wire in June. Milo and the freeholder subsequently settled on the final figure of £6,000 . If he had missed the deadline, the sum would have become more exhorbitant by at least £1,075.

Kilgetty case:

Mr U Roberts owned a garden apartment in Kilgetty in November 2009. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical properties in Kilgetty with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced monthly. The lease came to a finish on 1 September 2096. Given that there were 70 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 plus costs.

Kilgetty case:

In 2012 we were approached by Mr and Mrs. R Anderson who, having took over the lease of a first floor apartment in Kilgetty in June 2004. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Kilgetty with a long lease were worth £246,800. The average amount of ground rent was £60 invoiced monthly. The lease expired in 2076. Given that there were 50 years outstanding we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of fees.