Top reasons for Pentwyn lease extension

Main reasons to start your Pentwyn lease extension today:

Increase your lease and increase your Pentwyn property value

For those whose Pentwyn home is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.

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

Leasehold premises in Pentwyn with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not grant a mortgage with a short lease

Lending institutions have set criteria when loaning monies charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term falls lower than a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are seeking to refinance your Pentwyn property.

What makes us experts in Pentwyn lease extensions?

The conveyancers that we work with procure 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 lawyer we work with provide it.

Pentwyn Lease Extension Case Summaries:

Jonathan, Pentwyn, Cardiff,

Jonathan was the the leasehold owner of a high value apartment in Pentwyn being sold with a lease of fraction over 59 years left. Jonathan on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and secured an acceptable resolution informally and sell the flat.

Pentwyn case:

Last Winter we were contacted by Mr and Mrs. K Campbell , who purchased a first floor flat in Pentwyn in November 2002. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable properties in Pentwyn with an extended lease were valued about £166,800. The mid-range ground rent payable was £50 collected annually. The lease terminated in 2076. Considering the 50 years left we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.

Pentwyn case:

In 2010 we were approached by Mr A Scott who, having took over the lease of a one bedroom apartment in Pentwyn in March 1995. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Pentwyn with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 collected per annum. The lease expired on 12 September 2096. Given that there were 70 years remaining we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.