Why you should start your St Mellons lease extension

Main reasons to start your St Mellons lease extension today:

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

St Mellons 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 your lease becomes more expensive. It is the case that most St Mellons tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in St Mellons you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders will not finance a property on a short lease

Banks and building societies are really clamping down as regards to properties in St Mellons with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus narrowing the amount of prospective buyers.

Why use us for your lease extension in St Mellons?

The conveyancing solicitors that we work with undertake St Mellons 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 conveyancing solicitor we work with provide it.

St Mellons Lease Extension Example Cases:

Leah, St Mellons, Cardiff,

In the wake of 9 months of protracted discussions with the freeholder of her two bedroom apartment in St Mellons, Leah commenced the lease extension process as the 80 year threshold was rapidly nearing. The lease extension was concluded in October 2012. The landlord’s charges were negotiated to less than five hundred GBP.

St Mellons case:

Mr and Mrs. W Vincent moved into a newly refurbished flat in St Mellons in May 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical homes in St Mellons with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease came to a finish on 5 September 2099. Taking into account 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.

St Mellons case:

Last September we were contacted by Mr and Mrs. T Lefèvre , who took over the lease of a first floor flat in St Mellons in April 1998. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar residencies in St Mellons with 100 year plus lease were valued about £264,000. The mid-range ground rent payable was £60 billed quarterly. The lease came to a finish in 2079. Taking into account 53 years unexpired we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus fees.