Why you should start your Porthcawl lease extension

Top reasons for lease extension now:

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

Porthcawl residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Lending institutions may decide not to loan monies with a short lease

Most mortgage lenders insist on a lengthy amount of time remaining on any leasehold residence before they will consider providing a mortgage on it. Even if you don't need a mortgage, you should be conscious that it is reasonable to assume that someone intending to buy your property in the future might well do, so in the event that they can't secure a mortgage, then the financial worth of your property could be adversely impacted. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

Engaging our service will provide you better control over the value of your Porthcawl leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Porthcawl Lease Extension Example Cases:

Millie, Porthcawl, Bridgend,

Following lengthy negotiations with the freeholder of her two bedroom flat in Porthcawl, Millie commenced the lease extension process as the eighty year threshold was fast advancing. The transaction completed in September 2010. The landlord’s fees were kept to an absolute minimum.

Porthcawl case:

Dr O Turner acquired a studio apartment in Porthcawl in June 2000. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Porthcawl with a long lease were in the region of £275,000. The average ground rent payable was £45 billed per annum. The lease lapsed in 2095. Given that there were 69 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.

Porthcawl case:

Last October we were approach by Mr and Mrs. N Brown , who was assigned a lease of a basement apartment in Porthcawl in August 2000. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparative homes in Porthcawl with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease ended on 19 September 2084. Given that there were 58 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.