Top reasons for Porth lease extension

Top reasons for lease extension now:

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

As the the remaining lease term of a Porth domestic lease diminished so does its value and therefore the value of your property. If the residual term has, more than 125 years to run then this decrease may be negligible however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Porth will qualify for this right; however a conveyancing solicitor will be able to advise whether you qualify to extend your lease. 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.

Porth property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Porth with over one hundred years outstanding 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not lend on a short lease

Lenders are really clamping down as regards to homes in Porth with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus narrowing your market.

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

Regardless of whether you are a tenant or a freeholder in Porth,the lease extension solicitors 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 Porth valuers.

Porth Lease Extension Example Cases:

Ellen, Porth, Abercynon,

In the wake of 9 months of protracted negotiations with the landlord of her studio flat in Porth, Ellen commenced the lease extension process as the 80 year deadline was quickly nearing. The lease extension completed in November 2009. The landlord’s fees were kept to an absolute minimum.

Porth case:

Dr F Díaz owned a one bedroom flat in Porth in June 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Porth with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated on 13 July 2105. Having 79 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.

Porth case:

In 2013 we were approached by Mr R Jackson who, having took over the lease of a one bedroom apartment in Porth in July 2011. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative residencies in Porth with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 collected yearly. The lease came to a finish on 20 November 2094. Given that there were 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.