Why you should start your Llanelli lease extension

Why you should commence your Llanelli lease extension today:

Increase your lease and increase your Llanelli property value

Llanelli leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Llanelli enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Llanelli you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

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

Leasehold properties in Llanelli with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not loan monies on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 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 a prerequisite.

Why use us for your lease extension in Llanelli?

The lawyers that we work with handle Llanelli 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 conveyancing solicitor we work with provide it.

Llanelli Lease Extension Case Studies:

Alex, Llanelli, Ammanford,

Alex was the the leasehold owner of a high value apartment in Llanelli being sold with a lease of just over fifty eight years remaining. Alex on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.

Llanelli case:

Last year we were called by Dr Harry Ali , who was assigned a lease of a ground floor flat in Llanelli in April 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Llanelli with an extended lease were valued about £295,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2101. Having 75 years outstanding we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.

Llanelli case:

Last Winter we were approach by Ms R Wilson , who owned a recently refurbished apartment in Llanelli in February 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Llanelli with a long lease were worth £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease ended on 25 March 2090. Taking into account 64 years unexpired we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including expenses.