Why you should commence your Pontllanfraith lease extension

Top reasons for lease extension now:

Increase your lease and increase your Pontllanfraith property value

With a domestic leasehold property in Pontllanfraith, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Pontllanfraith with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years left, under the relevant legislation the freeholder can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold properties in Pontllanfraith with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may not grant a mortgage with a short lease

Lending institutions have set criteria when lending funds charged on leasehold homes. Some will simply refuse lend at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below seventy years as adequate security. In addition to this being important when selling, it is also relevant where you are wanting to remortgage your Pontllanfraith property.

What makes us experts in Pontllanfraith lease extensions?

The conveyancers that we work with procure Pontllanfraith 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.

Pontllanfraith Lease Extension Case Studies:

Leah, Pontllanfraith, Caerphilly,

In the wake of eight months of unsuccessful discussions with the freeholder of her one bedroom flat in Pontllanfraith, Leah initiated the lease extension process as the eighty year threshold was quickly coming. The lease extension completed in October 2008. The landlord’s charges were kept to an absolute minimum.

Pontllanfraith case:

In 2011 we were approached by Mrs V Williams who, having owned a studio flat in Pontllanfraith in August 1997. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparative flats in Pontllanfraith with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 billed per annum. The lease finished on 27 February 2095. Taking into account 69 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.

Pontllanfraith case:

In 2013 we were phoned by Mr O Lee who, having owned a basement flat in Pontllanfraith in March 2011. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative properties in Pontllanfraith with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 billed annually. The lease ended in 2084. Having 58 years remaining we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.