Main reasons to start your Treorchy lease extension

Why you should start your Treorchy lease extension today:

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

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

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

Leasehold residencies in Treorchy with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not grant a mortgage with a short lease

The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Treorchy lease extensions?

The conveyancers that we work with handle Treorchy 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.

Treorchy Lease Extension Case Summaries:

Michael, Treorchy, Abercynon

Last year Michael, started to get close to the 80-year threshold with the lease on his garden apartment in Treorchy. Having bought his home two decades ago, the unexpired term was of minimal importance. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Michael was able to extend his lease just ahead of time in January. Michael and the freeholder in the end settled on the final figure of £5,500 . If the lease had dipped below eighty years, the sum would have gone up by a minimum £1,025.

Treorchy case:

Mr Dylan Cook was assigned a lease of a garden apartment in Treorchy in July 2009. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable homes in Treorchy with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 collected quarterly. The lease lapsed on 14 May 2104. Having 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.

Treorchy case:

Last Autumn we were phoned by Dr Logan Murphy , who was assigned a lease of a recently refurbished flat in Treorchy in September 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Treorchy with a long lease were valued about £191,000. The mid-range amount of ground rent was £65 invoiced annually. The lease end date was on 6 June 2084. Considering the 58 years remaining we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including costs.