Why you should start your Rhayader lease extension

Main reasons to commence your Rhayader lease extension today:

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

As the the remaining lease term of a Rhayader residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending sooner rather than later. The majority of flat owners in Rhayader will qualify for this right; nevertheless a lawyer can confirm if 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.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to finance a property on a short lease

Most banks and building societies will be unwilling to lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Rhayader property becoming difficult to dispose of or remortgage.

What makes us experts in Rhayader lease extensions?

Engaging our service gives you enhanced control over the value of your Rhayader leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Rhayader Lease Extension Example Cases:

Noah, Rhayader, Powys,

Noah owned a studio flat in Rhayader being sold with a lease of just over sixty years unexpired. Noah on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Noah to exercise his statutory right. Noah obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Rhayader case:

In 2012 we were e-mailed by Mr and Mrs. V Wilson who, having completed a first floor flat in Rhayader in March 1997. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar properties in Rhayader with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2086. Considering the 60 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.

Rhayader case:

Mr and Mrs. D Davis moved into a first floor flat in Rhayader in November 1996. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Rhayader with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 collected per annum. The lease expired on 17 August 2106. Considering the 80 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.