Why you should commence your Porthcawl lease extension

Why you should commence your Porthcawl lease extension today:

Increase your lease and increase your Porthcawl property value

The market value of Porthcawl leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than eighty years

An extended lease is almost the same value as a freehold

It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to issue a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This will cause difficulties when you come to dispose of or remortgage your flat as it will be effectively unmortgageable. Even though you might have no imminent intention to sell but when you do your purchaser will have to hold off for 2 years before being able to start the legal procedures for a lease extension.

What makes us experts in Porthcawl lease extensions?

Regardless of whether you are a tenant or a freeholder in Porthcawl,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 experience and the close ties they enjoy with Porthcawl valuers.

Porthcawl Lease Extension Example Cases:

Hannah, Porthcawl, Bridgend,

Subsequent to unsuccessful correspondence with the landlord of her basement apartment in Porthcawl, Hannah commenced the lease extension process as the 80 year threshold was swiftly approaching. The transaction was finalised in April 2008. The freeholder’s charges were restricted to a tad over 650 GBP.

Porthcawl case:

Last May we were phoned by Mr and Mrs. V Norbert , who took over the lease of a basement apartment in Porthcawl in April 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Porthcawl with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease lapsed in 2099. Given that there were 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.

Porthcawl case:

Mr and Mrs. V Evans owned a newly refurbished apartment in Porthcawl in August 2006. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical properties in Porthcawl with 100 year plus lease were valued about £235,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease terminated in 2088. Given that there were 62 years left we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.