Why you should commence your Morganstown lease extension

Why you should start your Morganstown lease extension today:

Increase your lease and increase your Morganstown property value

The market value of a leasehold property in Morganstown depends on how long the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that all matters can be addressed well before the eighty year cut off point. Statute entitles Morganstown qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold premises in Morganstown with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may decide not to lend with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Morganstown lease extensions?

Retaining our service gives you increased control over the value of your Morganstown leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Morganstown Lease Extension Case Summaries:

Alexander, Morganstown, Cardiff

Last year Alexander, came very near to the 80-year threshold with the lease on his ground floor apartment in Morganstown. Having bought his property two decades ago, the lease term was of no concern. Thankfully, he noticed he needed to take action soon on Extending the lease. Alexander was able to extend his lease just ahead of time last January. Alexander and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had dropped below 80 years, the amount would have gone up by at least £1,075.

Morganstown case:

Last March we were e-mailed by Ms Megan Allen , who took over the lease of a garden flat in Morganstown in October 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical homes in Morganstown with an extended lease were valued about £295,000. The mid-range ground rent payable was £45 collected per annum. The lease ended in 2100. Given that there were 74 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.

Morganstown case:

In 2011 we were approached by Ms P Mercier who, having purchased a one bedroom flat in Morganstown in September 1999. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Similar properties in Morganstown with 100 year plus lease were valued about £243,000. The mid-range ground rent payable was £65 collected quarterly. The lease expired in 2089. Considering the 63 years remaining we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of fees.