Why you should start your Rumney lease extension

Top reasons for lease extension now:

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

For those whose Rumney home is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Banks and building societies are tightening their criteria and a meaningful number now want flats to have at least sixty if not seventy years left at the end of the mortgage. As a number of flats in Rumney were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Rumney lease extensions?

The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.

Rumney Lease Extension Example Cases:

Blake, Rumney, Cardiff,

Blake was the the leasehold owner of a conversion apartment in Rumney on the market with a lease of a few days over 72 years outstanding. Blake informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Rumney case:

In 2012 we were contacted by Dr Eli King who, having purchased a one bedroom apartment in Rumney in September 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Rumney with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced per annum. The lease terminated on 1 October 2099. Given that there were 73 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.

Rumney case:

Last Summer we were called by Mr and Mrs. F Lewis , who was assigned a lease of a garden apartment in Rumney in February 2011. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar homes in Rumney with a long lease were in the region of £240,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease lapsed on 5 January 2088. Having 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.