Top reasons for Penllergaer lease extension

Why you should start your Penllergaer lease extension today:

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

Penllergaer leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Penllergaer will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may not issue a mortgage with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 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.

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

Using our service gives you enhanced control over the value of your Penllergaer leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Penllergaer Lease Extension Example Cases:

Luke, Penllergaer, Swansea

Last October Luke, started to get close to the eighty-year mark with the lease on his studio flat in Penllergaer. In buying his property two decades ago, the lease term was of no bearing. As luck would have it, he recognised he would soon be paying way over the odds for Extending the lease. Luke arranged for a lease extension at the eleventh hour in August. Luke and the landlord ultimately settled on an amount of £5,000 . If the lease had descended to less than eighty years, the premium would have become more costly by at least £875.

Penllergaer case:

Dr V Kelly owned a studio apartment in Penllergaer in June 2009. We are asked if we could estimate the price would be for a ninety year lease extension. Similar homes in Penllergaer with a long lease were valued about £225,800. The average ground rent payable was £60 invoiced annually. The lease terminated in 2086. Having 60 years left we approximated the compensation to the landlord to extend the lease to be within £25,700 and £29,600 plus legals.

Penllergaer case:

Last Summer we were e-mailed by Mr and Mrs. M Mercier , who moved into a ground floor apartment in Penllergaer in November 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Penllergaer with an extended lease were valued around £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ran out in 2106. Given that there were 80 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.