Why you should start your Porthcawl lease extension

Why you should commence your Porthcawl lease extension today:

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

Porthcawl leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher amount will be payable. Leasehold owners in Porthcawl will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.

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

Almost all mortgage lenders insist on a lengthy amount of time remaining on a leasehold property before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should be conscious that it is reasonable to assume that someone wishing to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the financial worth of the property will likely be adversely impacted. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in Porthcawl?

Lease extensions in Porthcawl can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Porthcawl lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Porthcawl Lease Extension Example Cases:

Tyler, Porthcawl, Bridgend

Last Autumn Tyler, started to get close to the eighty-year mark with the lease on his garden apartment in Porthcawl. In buying his home 19 years ago, the lease term was of no significance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Tyler extended the lease at the eleventh hour in May. Tyler and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have escalated by at least £850.

Porthcawl case:

In 2011 we were contacted by Mrs A González who, having owned a ground floor apartment in Porthcawl in May 2011. We are asked if we could estimate the price would be to extend the lease by 90 years. Identical flats in Porthcawl with an extended lease were valued about £252,800. The mid-range amount of ground rent was £65 billed monthly. The lease ended on 7 November 2091. Having 65 years outstanding we estimated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus legals.

Porthcawl case:

Last Christmas we were called by Ms S Gray , who completed a one bedroom apartment in Porthcawl in October 1995. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparative premises in Porthcawl with 100 year plus lease were valued around £191,400. The average ground rent payable was £55 invoiced monthly. The lease concluded on 16 February 2080. Having 54 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of costs.