Main reasons to commence your Pontcanna lease extension

Main reasons to start your Pontcanna lease extension today:

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

Pontcanna leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Pontcanna enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pontcanna you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Pontcanna flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay

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

Leasehold residencies in Pontcanna with more than 100 years remaining 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not grant a mortgage with a short lease

Mortgage lenders have set criteria when loaning funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant if you are seeking to remortgage your Pontcanna property.

Why use us for your lease extension in Pontcanna?

Irrespective of whether you are a tenant or a freeholder in Pontcanna,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pontcanna valuers.

Pontcanna Lease Extension Example Cases:

Rory, Pontcanna, Cardiff

In 2014 Rory, came precariously near to the 80-year mark with the lease on his ground floor flat in Pontcanna. In buying his property two decades ago, the lease term was of no bearing. Thankfully, he noticed he needed to take steps soon on Extending the lease. Rory was able to extend his lease at the eleventh hour last July. Rory and the landlord eventually settled on sum of £5,000 . If the lease had slipped to less than 80 years, the sum would have increased by a minimum £1,100.

Pontcanna case:

In 2012 we were contacted by Mr and Mrs. S Cook who, having bought a ground floor flat in Pontcanna in March 2004. We are asked if we could estimate the premium could be to extend the lease by an additional years. Similar homes in Pontcanna with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £50 billed per annum. The lease ran out in 2094. Given that there were 68 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.

Pontcanna case:

Last Spring we were phoned by Mr and Mrs. G Sharif , who owned a one bedroom flat in Pontcanna in June 1999. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative homes in Pontcanna with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 invoiced yearly. The lease concluded in 2105. Taking into account 79 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.