Why you should start your Llanrumney lease extension

Why you should start your Llanrumney lease extension today:

A Llanrumney leasehold property depreciates with the years remaining on the lease.

With a long leasehold premises in Llanrumney, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Llanrumney with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once a lease has below eighty years remaining, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.

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

Leasehold premises in Llanrumney with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to loan monies on a short lease

The trend since over the last decade has been for lenders to tighten lending requirements 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 banks has increased. Historically mortgage companies were content 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 Llanrumney lease extension solicitors or enfranchisement solicitors

Lease extensions in Llanrumney can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Llanrumney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Llanrumney Lease Extension Case Summaries:

Jonathan, Llanrumney, Cardiff,

Jonathan was the the leasehold proprietor of a 2 bedroom apartment in Llanrumney being marketed with a lease of fraction over 72 years remaining. Jonathan informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Llanrumney case:

In 2013 we were contacted by Mrs E François who, having purchased a studio flat in Llanrumney in June 2005. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Llanrumney with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out in 2103. Taking into account 77 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.

Llanrumney case:

Dr Alicia Davis was assigned a lease of a studio apartment in Llanrumney in January 2005. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Llanrumney with a long lease were worth £260,200. The mid-range amount of ground rent was £65 collected quarterly. The lease end date was in 2092. Considering the 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.