Why you should start your Penllergaer lease extension

Top reasons for lease extension now:

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

With a residential leasehold property in Penllergaer, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Penllergaer with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. When a lease has fewer than eighty years remaining, under the current legislation the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.

Penllergaer property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not loan monies on a short lease

Many mortgage lenders will be unwilling to lend on a lease with under seventy years unexpired - although this varies between mortgage companies. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this could result in your Penllergaer property being difficult to sell or to obtain finance on.

Why use us for your lease extension in Penllergaer?

Engaging our service gives you increased control over the value of your Penllergaer leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Penllergaer Lease Extension Example Cases:

Jade, Penllergaer, Swansea,

After unsuccessful correspondence with the freeholder of her basement flat in Penllergaer, Jade started the lease extension process as the 80 year threshold was fast nearing. The legal work was finalised in July 2009. The landlord’s costs were kept to an absolute minimum.

Penllergaer case:

Last month we were e-mailed by Mrs Sian Cooper , who bought a garden apartment in Penllergaer in July 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Penllergaer with an extended lease were valued around £205,000. The average ground rent payable was £50 billed annually. The lease lapsed in 2105. Given that there were 79 years unexpired we estimated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including expenses.

Penllergaer case:

Ms Sophia Bennett was assigned a lease of a garden apartment in Penllergaer in October 2004. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Penllergaer with an extended lease were worth £270,000. The average ground rent payable was £65 invoiced monthly. The lease finished in 2094. Taking into account 68 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.