Main reasons to commence your Neath lease extension

Main reasons to commence your Neath lease extension today:

A Neath lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Neath is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised prior to the 80 year threshold. Leasehold Reform legislation enables Neath qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.

Lenders may decide not to finance a property with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - 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 mortgage companies were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Neath?

Lease extensions in Neath can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Neath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Neath Lease Extension Example Cases:

Samuel, Neath, Baglan,

Samuel owned a 2 bedroom flat in Neath being marketed with a lease of a few days over fifty eight years remaining. Samuel on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Samuel to invoke his statutory right. Samuel procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.

Neath case:

Dr I Harris was assigned a lease of a basement flat in Neath in November 2006. The question was if we could approximate the premium could be to extend the lease by an additional years. Similar homes in Neath with 100 year plus lease were valued about £193,400. The average amount of ground rent was £65 collected yearly. The lease terminated on 10 April 2085. Taking into account 59 years remaining we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus expenses.

Neath case:

In 2010 we were contacted by Dr Muhammad Taylor who, having was assigned a lease of a garden flat in Neath in July 2005. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar premises in Neath with a long lease were in the region of £250,000. The average ground rent payable was £50 collected annually. The lease concluded on 5 March 2095. Given that there were 69 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.