Top reasons for Rhiwderin lease extension

Why you should commence your Rhiwderin lease extension today:

Increase your lease and increase your Rhiwderin property value

The value of Rhiwderin leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years

Rhiwderin property with a lease extension has roughly the same value as a freehold

Leasehold properties in Rhiwderin with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may not lend on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to become concerned at around 75 years. This may cause difficulties when you wish to sell or remortgage your flat as it will be effectively unmortgageable. Even though you may not have an imminent desire to sell but when you do your buyer will need to hold off for 2 years before they can exercise the right to a a lease extension.

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

The conveyancers that we work with handle Rhiwderin lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Rhiwderin Lease Extension Case Summaries:

Sophia, Rhiwderin, Newport,

Following lengthy negotiations with the landlord of her first floor flat in Rhiwderin, Sophia commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was concluded in September 2006. The landlord’s costs were negotiated to a tad over five hundred pounds.

Rhiwderin case:

Last month we were contacted by Mr Nathaniel Murphy , who completed a first floor apartment in Rhiwderin in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Rhiwderin with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 collected per annum. The lease finished in 2076. Taking into account 50 years unexpired we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of legals.

Rhiwderin case:

Ms Olivia Flores owned a garden apartment in Rhiwderin in July 1995. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Rhiwderin with a long lease were in the region of £203,200. The average amount of ground rent was £65 collected annually. The lease finished in 2087. Taking into account 61 years left we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of expenses.