Why you should commence your Pentwyn lease extension

Why you should commence your Pentwyn lease extension today:

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

The closer a domestic lease in Pentwyn gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Pentwyn will meet the qualifying criteria; that being said a lawyer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

Leasehold properties in Pentwyn with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

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

The definition of a short lease varies by mortgage company, yet lending institutions start to become jittery at around 75 years. This may be problematic once you need to dispose of or remortgage your flat as it will be practically unmortgageable. You might not have an imminent desire to sell but when you do your purchaser must hold off for a couple of years before they can exercise the right to a an extension to the lease.

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

The conveyancing solicitors 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 conveyancing solicitor we work with provide it.

Pentwyn Lease Extension Example Cases:

Henry, Pentwyn, Cardiff,

Henry was the the leasehold owner of a conversion flat in Pentwyn being marketed with a lease of a little over sixty years unexpired. Henry informally spoke with his freeholder 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 on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Pentwyn case:

Dr Daisy Smith completed a studio flat in Pentwyn in October 2006. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical homes in Pentwyn with 100 year plus lease were worth £257,800. The average ground rent payable was £65 collected monthly. The lease lapsed on 14 April 2091. Given that there were 65 years outstanding we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.

Pentwyn case:

In 2011 we were called by Mr P Michel who, having bought a first floor apartment in Pentwyn in October 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar properties in Pentwyn with 100 year plus lease were valued about £191,400. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out on 16 August 2080. Considering the 54 years unexpired we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of legals.