Top reasons for Tenby lease extension

Why you should commence your Tenby lease extension today:

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

There is no doubt about it a leasehold flat or house in Tenby is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner as opposed to later. Most flat owners in Tenby will meet the qualifying criteria; however a conveyancer should be able to advise whether you are eligible for a lease extension. 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.

Tenby property with a lease extension is almost the same value as a freehold

Leasehold residencies in Tenby with more than one hundred years outstanding on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may not issue a mortgage on a short lease

Lenders are tightening their criteria and many now expect flats to have at least sixty if not seventy years remaining at the end of the mortgage. Considering plenty of flats in Tenby were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

Why use us for your lease extension in Tenby?

Retaining our service will provide you enhanced control over the value of your Tenby leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Tenby Lease Extension Case Summaries:

Riley, Tenby, Pembrokeshire,

Riley owned a studio flat in Tenby being sold with a lease of fraction over 59 years left. Riley on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Riley to invoke his statutory right. Riley obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.

Tenby case:

In 2013 we were called by Mr and Mrs. S Stewart who, having was assigned a lease of a ground floor apartment in Tenby in March 2012. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar flats in Tenby with an extended lease were valued around £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out on 26 August 2097. Given that there were 71 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.

Tenby case:

Mr and Mrs. A Simon bought a ground floor apartment in Tenby in November 2004. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative premises in Tenby with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 billed quarterly. The lease expiry date was in 2077. Having 51 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of legals.