Why you should commence your Tredegar lease extension

Why you should commence your Tredegar lease extension today:

Increase your lease and increase your Tredegar property value

The value of Tredegar leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years

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

Leasehold properties in Tredegar with over 100 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to issue a mortgage on a short lease

Banks and building societies are making their criteria more stringent and many now require flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Considering many flats in Tredegar were built in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

What makes us experts in Tredegar lease extensions?

Irrespective of whether you are a tenant or a freeholder in Tredegar,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tredegar valuers.

Tredegar Lease Extension Case Studies:

Leo, Tredegar, Abertillery

In 2014 Leo, came seriously near to the eighty-year mark with the lease on his leasehold flat in Tredegar. Having bought his home two decades ago, the length of the lease was of minimal interest. Thankfully, he became aware that he needed to take action soon on Extending the lease. Leo arranged for a lease extension at the eleventh hour last September. Leo and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If he not met the deadline, the amount would have gone up by at least £1,100.

Tredegar case:

Mrs Georgia Fournier owned a studio flat in Tredegar in March 2010. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable residencies in Tredegar with a long lease were valued about £250,400. The average amount of ground rent was £65 collected every twelve months. The lease lapsed in 2090. Considering the 64 years outstanding we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.

Tredegar case:

Ms Y Laurent moved into a one bedroom flat in Tredegar in August 2002. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Tredegar with 100 year plus lease were worth £189,000. The mid-range ground rent payable was £55 invoiced yearly. The lease lapsed in 2079. Considering the 53 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.