Why you should commence your Rumney lease extension

Top reasons for lease extension now:

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

The nearer a domestic lease in Rumney gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 99 years remaining then this decrease may be fractional however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Rumney will qualify for this right; nevertheless a conveyancer should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

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

Leasehold premises in Rumney with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not loan monies with a short lease

Banks and Building Societies have set criteria when lending funds charged on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term goes below a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below 75 years as adequate security. As well as this being important when selling, it is also relevant where you are seeking to remortgage your Rumney home.

What makes us experts in Rumney lease extensions?

The conveyancing solicitors that we work with undertake Rumney 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 lawyer we work with provide it.

Rumney Lease Extension Case Studies:

Arthur, Rumney, Cardiff

During the course of the last few months Arthur, started to get near to the 80-year mark with the lease on his leasehold apartment in Rumney. Having bought his home 19 years ago, the lease term was of minimal importance. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Arthur was able to extend his lease at the eleventh hour last August. Arthur and the freeholder via the management company in the end settled on a premium of £5,500 . If the lease had fallen below eighty years, the premium would have escalated by at least £1,000.

Rumney case:

Last Summer we were e-mailed by Mrs Y Sharif , who owned a purpose-built apartment in Rumney in March 2010. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Rumney with 100 year plus lease were in the region of £257,800. The average amount of ground rent was £65 billed yearly. The lease ended in 2091. Considering the 65 years left we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.

Rumney case:

Mrs Stephanie Hill owned a one bedroom apartment in Rumney in June 2000. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Similar premises in Rumney with a long lease were in the region of £191,400. The average ground rent payable was £55 invoiced every twelve months. The lease finished on 13 January 2080. Taking into account 54 years left we estimated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of legals.