Why you should commence your Pentwyn lease extension

Why you should start your Pentwyn lease extension today:

A Pentwyn leasehold property depreciates with the years remaining on the lease.

The nearer a domestic lease in Pentwyn gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Pentwyn will qualify for this right; nevertheless a conveyancer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Pentwyn with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not grant a mortgage on a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have at least sixty if not seventy years remaining once the mortgage has expired. Considering a number of flats in Pentwyn were created in the fifties, sixties and seventies this means many now need to be extended if they wish to get a mortgage.

What makes us experts in Pentwyn lease extensions?

The lawyers that we work with handle Pentwyn 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 conveyancer we work with provide it.

Pentwyn Lease Extension Case Studies:

Danielle, Pentwyn, Cardiff,

Following unsuccessful discussions with the freeholder of her leasehold flat in Pentwyn, Danielle started the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension completed in February 2010. The landlord’s fees were kept to an absolute minimum.

Pentwyn case:

In 2010 we were phoned by Mr and Mrs. U Vincent who, having moved into a studio apartment in Pentwyn in November 1999. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Identical properties in Pentwyn with an extended lease were worth £233,200. The average ground rent payable was £60 collected per annum. The lease terminated in 2087. Having 61 years outstanding we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 plus costs.

Pentwyn case:

In 2014 we were contacted by Mr and Mrs. A Petit who, having acquired a ground floor flat in Pentwyn in May 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Pentwyn with a long lease were worth £166,800. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2076. Given that there were 50 years left we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.