Main reasons to commence your Llandovery lease extension

Top reasons for lease extension now:

Increase your lease and increase your Llandovery property value

Llandovery leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Llandovery will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Llandovery with over one hundred years unexpired on the lease are sometimes regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may not lend with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has resulted in 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 50 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.

What makes us experts in Llandovery lease extensions?

The conveyancing solicitors that we work with handle Llandovery 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 lawyer we work with provide it.

Llandovery Lease Extension Example Cases:

Alfie, Llandovery, Carmarthenshire

Last October Alfie, came dangerously near to the eighty-year threshold with the lease on his basement apartment in Llandovery. In buying his property two decades ago, the lease term was of no significance. by good luck, he realised he needed to take steps soon on a lease extension. Alfie extended the lease just in the nick of time in January. Alfie and the freeholder via the managing agents eventually agreed on an amount of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £1,000.

Llandovery case:

Mr and Mrs. J Adams purchased a recently refurbished apartment in Llandovery in July 1995. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparative properties in Llandovery with an extended lease were valued around £174,200. The average ground rent payable was £55 billed annually. The lease finished in 2077. Having 51 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.

Llandovery case:

In 2012 we were contacted by Ms C Gómez who, having moved into a first floor apartment in Llandovery in August 1995. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Identical premises in Llandovery with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 12 May 2097. Having 71 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.