Why you should commence your Maesteg lease extension

Top reasons for lease extension now:

Increase your lease and increase your Maesteg property value

Maesteg leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Maesteg will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Maesteg with over one hundred years outstanding 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders may not grant a mortgage on a short lease

Almost all banks and building societies will not grant a mortgage on a lease with under seventy years remaining - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Maesteg property being difficult to dispose of or to obtain finance on.

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

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

Maesteg Lease Extension Example Cases:

Ellie, Maesteg, Bridgend,

Trailing unsuccessful discussions with the landlord of her garden flat in Maesteg, Ellie commenced the lease extension process as the 80 year mark was rapidly coming. The transaction completed in March 2011. The freeholder’s costs were kept to an absolute minimum.

Maesteg case:

In 2013 we were phoned by Mr and Mrs. D Young who, having was assigned a lease of a one bedroom flat in Maesteg in November 2008. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar premises in Maesteg with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed every twelve months. The lease concluded in 2099. Considering the 73 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.

Maesteg case:

Dr Elijah Wood was assigned a lease of a one bedroom apartment in Maesteg in August 2003. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Identical properties in Maesteg with an extended lease were valued about £240,600. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 24 August 2088. Given that there were 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.