Why you should commence your Newbridge lease extension

Top reasons for lease extension now:

Increase your lease and increase your Newbridge property value

Newbridge residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.

An extended lease has roughly the same value as a freehold

Leasehold properties in Newbridge with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to issue a mortgage with a short lease

Mortgage companies do not like short residential leases. You are likely to experience problems if you need to sell your flat in Newbridge if the unexpired lease term is below the criteria set by most banks and building societies. Different lenders have varying criteria but in the main they are looking for an unexpired term of at least seventy years.

What makes us experts in Newbridge lease extensions?

The conveyancers that we work with undertake Newbridge 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.

Newbridge Lease Extension Example Cases:

Zachary, Newbridge, Caerphilly,

Zachary owned a studio flat in Newbridge on the market with a lease of a few days over sixty years outstanding. Zachary informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Zachary to exercise his statutory right. Zachary procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Newbridge case:

Mr V Davies took over the lease of a basement flat in Newbridge in June 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparable premises in Newbridge with a long lease were valued about £168,800. The average ground rent payable was £60 billed per annum. The lease termination date was in 2081. Having 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.

Newbridge case:

In 2014 we were contacted by Mr W Thomas who, having purchased a studio apartment in Newbridge in March 1997. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparative properties in Newbridge with a long lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2092. Considering the 66 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.