Why you should commence your Rumney lease extension

Main reasons to start your Rumney lease extension today:

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

Rumney leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Rumney will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to finance a property on a short lease

Lending institutions have specific criteria when loaning monies charged on leasehold homes. Many will simply refuse lend at all once the remaining lease term drops lower than a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than seventy years suitable security. As well as this being important when selling, it is also relevant where you are intending to refinance your Rumney home.

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

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

Rumney Lease Extension Case Summaries:

Jordan, Rumney, Cardiff,

Trailing lengthy correspondence with the freeholder of her basement apartment in Rumney, Jordan commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work completed in March 2012. The freeholder’s costs were restricted to a tad over 600 pounds.

Rumney case:

Dr Daisy Ramírez bought a one bedroom flat in Rumney in November 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical homes in Rumney with an extended lease were worth £275,000. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish on 1 June 2095. Taking into account 69 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.

Rumney case:

Last Winter we were approach by Ms Chloe González , who completed a ground floor apartment in Rumney in October 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical residencies in Rumney with 100 year plus lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease ran out in 2084. Taking into account 58 years remaining we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.