Why you should commence your Killay lease extension

Why you should commence your Killay lease extension today:

Increase your lease and increase your Killay property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Killay. Clearly, the length of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Killay have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Killay lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease

Killay property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to finance a property on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

The conveyancers that we work with procure Killay 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.

Killay Lease Extension Example Cases:

Ollie, Killay, Swansea,

Ollie owned a high value apartment in Killay on the market with a lease of just over fifty eight years left. Ollie informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.

Killay case:

In 2014 we were approached by Mrs V David who, having was assigned a lease of a studio apartment in Killay in June 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable premises in Killay with an extended lease were valued around £200,000. The average ground rent payable was £50 billed annually. The lease lapsed in 2103. Given that there were 77 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.

Killay case:

In 2014 we were approached by Mr and Mrs. L Ward who, having moved into a studio flat in Killay in February 2008. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable properties in Killay with an extended lease were in the region of £260,200. The average ground rent payable was £65 collected annually. The lease concluded in 2092. Given that there were 66 years remaining we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 plus fees.