Main reasons to commence your Little Haven lease extension

Main reasons to start your Little Haven lease extension today:

A Little Haven leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Little Haven residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Little Haven property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Little Haven will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.

Little Haven property with a lease extension is almost the same value as a freehold

Leasehold residencies in Little Haven with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

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

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This will cause difficulties when you need to market or remortgage your property as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your purchaser will have to hold off for 2 years before they can start the legal procedures for a lease extension.

Why use us for your lease extension in Little Haven?

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

Little Haven Lease Extension Case Summaries:

Natasha, Little Haven, Pembrokeshire,

Off the back of unsuccessful negotiations with the landlord of her ground floor apartment in Little Haven, Natasha commenced the lease extension process as the eighty year deadline was swiftly advancing. The legal work was concluded in April 2011. The freeholder’s costs were kept to an absolute minimum.

Little Haven case:

In 2012 we were e-mailed by Mr and Mrs. I Jones who, having bought a ground floor flat in Little Haven in February 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable homes in Little Haven with an extended lease were in the region of £260,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2098. Given that there were 72 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.

Little Haven case:

Mr and Mrs. B White purchased a basement apartment in Little Haven in January 2005. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Little Haven with a long lease were valued about £256,600. The average ground rent payable was £60 invoiced yearly. The lease expired on 2 June 2078. Taking into account 52 years left we approximated the premium to the freeholder to extend the lease to be within £41,800 and £48,400 exclusive of expenses.