Main reasons to start your Risca lease extension

Main reasons to commence your Risca lease extension today:

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

Risca leases on domestic deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Risca will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s wise to be guided by a lawyer during the process.

Risca property with a lease extension is almost the same value as a freehold

Leasehold residencies in Risca with in excess of one hundred years outstanding on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get concerned at around 75 years. This may be problematic once you come to sell or remortgage your property as it will be practically unmortgageable. You may have no imminent desire to sell but when you do your buyer will have to hold off for two years before being able to exercise the right to a a lease extension.

Why use us for your lease extension in Risca?

Regardless of whether you are a tenant or a freeholder in Risca,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Risca valuers.

Risca Lease Extension Case Studies:

Harrison, Risca, Caerphilly

Two years ago Harrison, started to get close to the eighty-year mark with the lease on his ground floor flat in Risca. Having bought his flat twenty years previously, the length of the lease was of little importance. Fortunately, he noticed he needed to take steps soon on Extending the lease. Harrison was able to extend his lease at the eleventh hour in September. Harrison and the freeholder via the management company eventually agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,150.

Risca case:

Mr and Mrs. O Leroy completed a studio flat in Risca in June 2006. The question 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. Identical homes in Risca with an extended lease were in the region of £186,000. The average ground rent payable was £65 billed quarterly. The lease concluded in 2084. Taking into account 58 years left we approximated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.

Risca case:

Mrs G Phillips took over the lease of a studio flat in Risca in April 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Risca with an extended lease were worth £250,000. The average amount of ground rent was £50 collected annually. The lease elapsed on 8 January 2095. Taking into account 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.