Main reasons to start your Neath Abbey lease extension

Top reasons for lease extension now:

A Neath Abbey leasehold property depreciates with the years remaining on the lease.

Neath Abbey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Neath Abbey tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Neath Abbey you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Neath Abbey property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.

Lenders will not loan monies on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are deemed to be unacceptable for lending purposes.

Why use us for your lease extension in Neath Abbey?

Regardless of whether you are a tenant or a landlord in Neath Abbey,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Neath Abbey valuers.

Neath Abbey Lease Extension Example Cases:

Austin, Neath Abbey, Neath Port Talbot

Last October Austin, started to get close to the eighty-year mark with the lease on his garden apartment in Neath Abbey. In buying his flat two decades ago, the lease term was of minimal significance. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Austin was able to extend his lease just in the nick of time in August. Austin and the freeholder subsequently settled on sum of £5,500 . If he failed to meet the deadline, the price would have become more costly by at least £1,125.

Neath Abbey case:

In 2013 we were e-mailed by Mr and Mrs. T Evans who, having acquired a garden flat in Neath Abbey in September 2000. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar properties in Neath Abbey with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 collected monthly. The lease ran out in 2086. Taking into account 60 years outstanding we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus costs.

Neath Abbey case:

In 2009 we were called by Mr and Mrs. T Walker who, having owned a garden flat in Neath Abbey in November 1997. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable premises in Neath Abbey with an extended lease were worth £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out in 2106. Taking into account 80 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.