Main reasons to start your St Clears lease extension

Why you should start your St Clears lease extension today:

A St Clears leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in St Clears is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in St Clears will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in St Clears with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to loan monies with a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant if you are wanting to refinance your St Clears home.

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

The conveyancing solicitors that we work with undertake St Clears 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.

St Clears Lease Extension Case Summaries:

Olivia, St Clears, Carmarthenshire,

Subsequent to unsuccessful correspondence with the freeholder of her basement apartment in St Clears, Olivia commenced the lease extension process as the 80 year deadline was swiftly nearing. The transaction completed in May 2015. The freeholder’s fees were kept to an absolute minimum.

St Clears case:

In 2011 we were approached by Mr Finley Clarke who, having purchased a basement apartment in St Clears in September 2001. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical homes in St Clears with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2097. Given that there were 71 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.

St Clears case:

In 2014 we were e-mailed by Mr R Reed who, having acquired a purpose-built flat in St Clears in June 2011. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical premises in St Clears with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced annually. The lease ran out in 2077. Considering the 51 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including professional charges.