Why you should commence your St Davids lease extension

Main reasons to start your St Davids lease extension today:

A St Davids lease depreciates with the years remaining on the lease.

With a residential leasehold property in St Davids, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in St Davids with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has less than 80 years remaining, under the relevant statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.

St Davids property with a lease extension has roughly the same value as a freehold

Leasehold properties in St Davids with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may not issue a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in St Davids?

Retaining our service gives you increased control over the value of your St Davids leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

St Davids Lease Extension Case Studies:

Tia, St Davids, Pembrokeshire,

Subsequent to lengthy negotiations with the freeholder of her basement flat in St Davids, Tia initiated the lease extension process just as her lease was nearing the critical 80-year mark. The transaction was finalised in May 2015. The freeholder’s fees were negotiated to less than 450 pounds.

St Davids case:

Last year we were e-mailed by Ms O Hall , who owned a newly refurbished flat in St Davids in June 2006. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in St Davids with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected monthly. The lease elapsed on 8 July 2084. Having 58 years outstanding we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.

St Davids case:

In 2011 we were contacted by Mr Aaron Gómez who, having bought a newly refurbished flat in St Davids in February 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in St Davids with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out in 2104. Taking into account 78 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.