Main reasons to start your St Fagans lease extension

Top reasons for lease extension now:

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

St Fagans leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying St Fagans residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in St Fagans you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

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

Leasehold residencies in St Fagans with over one hundred years outstanding 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not loan monies on a short lease

Banks and Building Societies have specific criteria when lending funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your St Fagans property.

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

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

St Fagans Lease Extension Example Cases:

Kai, St Fagans, Cardiff,

Kai owned a 2 bedroom apartment in St Fagans being marketed with a lease of a little over 59 years left. Kai informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai obtained expert advice and secured an acceptable resolution informally and sell the flat.

St Fagans case:

In 2014 we were e-mailed by Mrs Chantelle André who, having completed a purpose-built flat in St Fagans in September 2001. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar homes in St Fagans with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2083. Given that there were 57 years outstanding we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.

St Fagans case:

In 2012 we were called by Mr and Mrs. O Campbell who, having moved into a newly refurbished apartment in St Fagans in August 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative homes in St Fagans with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed on 4 March 2103. Given that there were 77 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.