Why you should commence your Treorchy lease extension

Main reasons to commence your Treorchy lease extension today:

Increase your lease and increase your Treorchy property value

With a long leasehold premises in Treorchy, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Anyone in Treorchy with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When a lease has below 80 years remaining, under the relevant legislation the landlord can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.

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

It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.

Lenders will not issue a mortgage on a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under 75 years as they are deemed to be deficient for lending purposes.

What makes us experts in Treorchy lease extensions?

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

Treorchy Lease Extension Example Cases:

George, Treorchy, Abercynon,

George owned a high value flat in Treorchy being sold with a lease of a few days over sixty years unexpired. George on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were George to invoke his statutory right. George obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.

Treorchy case:

In 2012 we were called by Mr A Cooper who, having purchased a garden apartment in Treorchy in February 2005. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar residencies in Treorchy with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 billed per annum. The lease lapsed on 9 August 2085. Considering the 59 years unexpired we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.

Treorchy case:

Last year we were approach by Mr and Mrs. G Phillips , who completed a first floor apartment in Treorchy in November 1996. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparable residencies in Treorchy with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed annually. The lease ended in 2096. Taking into account 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus expenses.