Why you should commence your Machen lease extension

Main reasons to commence your Machen lease extension today:

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

The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Machen may extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Machen lease extension. Shelving that expense today simply escalates the price you will eventually have to pay to extend the lease.

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

Leasehold properties in Machen with more than 100 years remaining 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not loan monies with a short lease

The propensity 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 home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Machen lease extensions?

Irrespective of whether you are a tenant or a landlord in Machen,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Machen valuers.

Machen Lease Extension Example Cases:

Ella, Machen, Caerphilly,

Following protracted discussions with the landlord of her two bedroom flat in Machen, Ella started the lease extension process just as her lease was nearing the critical eighty-year mark. The legal work was concluded in October 2012. The freeholder’s costs were kept to an absolute minimum.

Machen case:

Mr and Mrs. K André acquired a recently refurbished apartment in Machen in February 2000. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Machen with a long lease were valued about £196,400. The average amount of ground rent was £55 billed annually. The lease lapsed in 2080. Considering the 54 years unexpired we estimated the premium to the freeholder for the lease extension to be between £35,200 and £40,600 plus legals.

Machen case:

In 2012 we were approached by Dr V Johnson who, having purchased a one bedroom apartment in Machen in September 2012. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical homes in Machen with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed every twelve months. The lease ended in 2100. Taking into account 74 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.