Top reasons for Morganstown lease extension

Main reasons to commence your Morganstown lease extension today:

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

The market value of Morganstown leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Morganstown with over 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not grant a mortgage on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Morganstown?

The lawyers that we work with handle Morganstown 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 lawyer we work with provide it.

Morganstown Lease Extension Case Summaries:

Tommy, Morganstown, Cardiff

In recent months Tommy, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Morganstown. In buying his flat 19 years ago, the unexpired term was of little relevance. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. Tommy extended the lease just in the nick of time in March. Tommy and the freeholder eventually settled on the final figure of £5,500 . If the lease had dipped lower than eighty years, the figure would have gone up by at least £1,100.

Morganstown case:

Ms Isabelle King purchased a studio apartment in Morganstown in September 2007. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Morganstown with a long lease were worth £260,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out on 11 August 2092. Considering the 66 years remaining we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus legals.

Morganstown case:

Last June we were e-mailed by Dr Kate Rogers , who owned a one bedroom flat in Morganstown in November 2006. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable premises in Morganstown with 100 year plus lease were worth £198,800. The average ground rent payable was £55 collected annually. The lease expired in 2081. Having 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus costs.