Top reasons for Rhiwbina lease extension

Top reasons for lease extension now:

Increase your lease and increase your Rhiwbina property value

Rhiwbina leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Rhiwbina will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

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

Mortgage lenders may decide not to loan monies on a short lease

The trend since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a freeholder in Rhiwbina,the lease extension experts 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 Rhiwbina valuers.

Rhiwbina Lease Extension Example Cases:

Phoebe, Rhiwbina, Cardiff,

In the wake of eight months of lengthy discussions with the landlord of her garden apartment in Rhiwbina, Phoebe initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was finalised in November 2010. The freeholder’s costs were kept to an absolute minimum.

Rhiwbina case:

Dr Amber Petit moved into a newly refurbished apartment in Rhiwbina in May 2011. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative properties in Rhiwbina with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced annually. The lease lapsed on 4 March 2097. Having 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.

Rhiwbina case:

Last Christmas we were phoned by Mr and Mrs. I Fournier , who purchased a one bedroom apartment in Rhiwbina in November 2007. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Rhiwbina with an extended lease were worth £240,600. The mid-range ground rent payable was £60 collected per annum. The lease ran out on 17 January 2086. Given that there were 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.