Main reasons to commence your Mountain Ash lease extension

Main reasons to start your Mountain Ash lease extension today:

A Mountain Ash lease depreciates with the years remaining on the lease.

As the the remaining lease term of a Mountain Ash domestic lease decreases so does its value and therefore the value of your property. If the residual term has, beyond 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Mountain Ash will meet the qualifying criteria; that being said a conveyancer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not issue a mortgage with a short lease

Many mortgage lenders will not grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties to obtain a mortgage and this will result in your Mountain Ash property becoming difficult to sell or to obtain finance on.

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

The conveyancing solicitors that we work with handle Mountain Ash 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.

Mountain Ash Lease Extension Case Summaries:

Hannah, Mountain Ash, Abercynon,

After unsuccessful discussions with the landlord of her ground floor apartment in Mountain Ash, Hannah initiated the lease extension process as the eighty year threshold was swiftly coming. The lease extension was concluded in November 2005. The landlord’s costs were negotiated to below 500 pounds.

Mountain Ash case:

In 2010 we were contacted by Ms F Dupont who, having acquired a garden flat in Mountain Ash in March 1997. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Mountain Ash with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out on 1 November 2098. Taking into account 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.

Mountain Ash case:

Dr W Rivera took over the lease of a first floor apartment in Mountain Ash in November 1996. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar flats in Mountain Ash with a long lease were valued around £256,600. The mid-range ground rent payable was £60 billed monthly. The lease concluded on 16 October 2078. Given that there were 52 years unexpired we estimated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including professional charges.