Main reasons to start your Thornhill lease extension

Why you should commence your Thornhill lease extension today:

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

The only way is down when it comes to Thornhill lease terms. Thornhill leaseholds that have a remaining term lower than 80 years will drop in value even faster, and the cost of extending your lease will increase.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to loan monies on a short lease

Lenders are inclined not lend on short residential leases. You most probably experience difficulties where you wish to sell your flat in Thornhill if the remaining term of your lease is under the criteria set by the majority of lenders. Different mortgage companies have different requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Thornhill?

The conveyancing solicitors that we work with procure Thornhill 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.

Thornhill Lease Extension Case Studies:

Dexter, Thornhill, Cardiff,

Dexter owned a 2 bedroom flat in Thornhill being sold with a lease of just over 61 years remaining. Dexter on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.

Thornhill case:

In 2011 we were called by Mrs K Wilson who, having took over the lease of a one bedroom apartment in Thornhill in June 1998. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical premises in Thornhill with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ran out in 2100. Having 74 years unexpired we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.

Thornhill case:

Dr Y Johnson moved into a studio apartment in Thornhill in November 2011. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in Thornhill with a long lease were valued around £243,000. The average amount of ground rent was £65 collected annually. The lease elapsed in 2089. Considering the 63 years left we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus costs.