Why you should commence your Tonteg lease extension

Main reasons to commence your Tonteg lease extension today:

A Tonteg lease depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Tonteg, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider 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 notably once there are fewer than eighty years left. Leasehold owners in Tonteg with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under 80 years remaining, under the current statute the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.

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

Leasehold premises in Tonteg with in excess of 100 years unexpired on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Lenders may decide not to grant a mortgage with a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will likely find it difficult to obtain a mortgage and this will result in your Tonteg property being difficult to sell or to obtain finance on.

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

Engaging our service gives you better control over the value of your Tonteg leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Tonteg Lease Extension Example Cases:

Jessica, Tonteg, Abercynon,

After protracted correspondence with the landlord of her first floor flat in Tonteg, Jessica commenced the lease extension process as the eighty year threshold was quickly approaching. The legal work was finalised in September 2013. The freeholder’s fees were restricted to approximately 600 pounds.

Tonteg case:

Last July we were phoned by Mr and Mrs. K Laurent , who bought a studio flat in Tonteg in June 2001. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable homes in Tonteg with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 collected annually. The lease expired in 2103. Considering the 77 years unexpired we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.

Tonteg case:

Ms Kate Ricardo owned a ground floor apartment in Tonteg in August 1998. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar homes in Tonteg with 100 year plus lease were valued about £183,600. The mid-range ground rent payable was £65 billed monthly. The lease ran out on 10 April 2083. Taking into account 57 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.