Why you should commence your Porthcawl lease extension

Main reasons to commence your Porthcawl lease extension today:

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

Porthcawl leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Porthcawl residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Porthcawl you should investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Porthcawl with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders will not grant a mortgage with a short lease

The trend since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Porthcawl?

Engaging our service will provide you enhanced control over the value of your Porthcawl leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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 Case Summaries:

Connor, Porthcawl, Bridgend

Last year Connor, came precariously near to the 80-year mark with the lease on his basement apartment in Porthcawl. In buying his flat two decades ago, the unexpired term was of minimal significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Connor extended the lease just in the nick of time in September. Connor and the freeholder via the management company subsequently settled on the final figure of £5,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £925.

Porthcawl case:

Last Spring we were e-mailed by Dr K Lefèvre , who bought a purpose-built flat in Porthcawl in May 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Porthcawl with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease expired in 2087. Considering the 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus fees.

Porthcawl case:

Last Summer we were called by Mr Kyle Watson , who owned a recently refurbished flat in Porthcawl in October 2008. The question was if we could estimate the premium could be to prolong the lease by ninety years. Comparable flats in Porthcawl with 100 year plus lease were worth £166,800. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded in 2076. Considering the 50 years outstanding we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.