Top reasons for Saundersfoot lease extension

Top reasons for lease extension now:

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

Saundersfoot leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Saundersfoot enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Saundersfoot you would be well advised to check if your lease has between 70 and 90 years left. There are compelling reasons why a Saundersfoot flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Saundersfoot with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lenders may not lend with a short lease

Almost all mortgage companies will not grant a mortgage on a lease with under seventy years unexpired - although this varies from lender to lender. A purchaser will likely encounter difficulties to obtain a mortgage and this could result in your Saundersfoot property being difficult to sell or refinance.

What makes us experts in Saundersfoot lease extensions?

The lawyers that we work with undertake Saundersfoot 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.

Saundersfoot Lease Extension Example Cases:

Lucas, Saundersfoot, Pembrokeshire,

Lucas was the the leasehold proprietor of a conversion apartment in Saundersfoot on the market with a lease of just over sixty years left. Lucas informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Saundersfoot case:

Ms T Ali completed a first floor apartment in Saundersfoot in August 2005. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar premises in Saundersfoot with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed on 3 April 2104. Having 78 years left we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.

Saundersfoot case:

In 2013 we were contacted by Ms Morgan Allen who, having owned a one bedroom flat in Saundersfoot in February 2007. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar residencies in Saundersfoot with a long lease were worth £186,000. The average amount of ground rent was £65 invoiced per annum. The lease ended on 21 July 2084. Taking into account 58 years unexpired we calculated the premium to the landlord for the lease extension to be between £24,700 and £28,600 plus costs.