Main reasons to commence your Pontypool lease extension

Main reasons to commence your Pontypool lease extension today:

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

The market value of a leasehold property in Pontypool depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised ahead of the 80 year mark. Current legislation enables Pontypool qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (no ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies on a short lease

Lending institutions have set criteria when lending monies charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term slips under a certain unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are wanting to refinance your Pontypool property.

What makes us experts in Pontypool lease extensions?

The lawyers that we work with procure Pontypool 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.

Pontypool Lease Extension Example Cases:

Mia, Pontypool, Torfaen,

Subsequent to protracted discussions with the freeholder of her garden apartment in Pontypool, Mia started the lease extension process as the 80 year mark was rapidly coming. The transaction was concluded in September 2015. The landlord’s costs were restricted to a tad over six hundred pounds.

Pontypool case:

Last Winter we were called by Mr and Mrs. Y Michel , who purchased a one bedroom flat in Pontypool in November 2009. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar properties in Pontypool with a long lease were valued around £213,600. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated on 26 February 2083. Having 57 years unexpired we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus legals.

Pontypool case:

In 2010 we were approached by Mr and Mrs. I Brooks who, having completed a basement apartment in Pontypool in April 2006. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Pontypool with an extended lease were in the region of £200,000. The average amount of ground rent was £50 invoiced yearly. The lease end date was on 3 February 2103. Given that there were 77 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.