Main reasons to start your Machen lease extension

Main reasons to start your Machen lease extension today:

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

The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Machen have the right to extend the lease for a further ninety years under statute. Do think carefully before delaying your Machen lease extension. Putting off the costs now simply escalates the price you will ultimately have to pay to extend the lease.

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

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

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

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant 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 - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Machen lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with procure Machen 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.

Machen Lease Extension Case Summaries:

Niamh, Machen, Caerphilly,

After unsuccessful correspondence with the freeholder of her studio flat in Machen, Niamh started the lease extension process just as the lease was approaching the all-important eighty-year mark. The lease extension completed in May 2010. The landlord’s costs were negotiated to below 600 GBP.

Machen case:

Last Autumn we were called by Mr and Mrs. O Rogers , who acquired a first floor flat in Machen in July 1996. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable premises in Machen with 100 year plus lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired in 2076. Considering the 50 years left we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.

Machen case:

Mr and Mrs. E Lee completed a purpose-built flat in Machen in September 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical residencies in Machen with 100 year plus lease were worth £280,000. The average ground rent payable was £45 invoiced annually. The lease ran out in 2096. Having 70 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.