Main reasons to start your Undy lease extension

Main reasons to commence your Undy lease extension today:

Increase your lease and increase your Undy property value

With a long leasehold property in Undy, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Undy with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has less than 80 years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.

Undy property with a lease extension is almost the same value as a freehold

Leasehold properties in Undy with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not lend on a short lease

Lending institutions have set criteria when lending monies charged on leasehold property. Some will simply refrain from lending at all once the residual lease term falls beneath a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Undy home.

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

The conveyancing solicitors that we work with procure Undy 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.

Undy Lease Extension Example Cases:

Kayleigh, Undy, Monmouthshire,

After lengthy negotiations with the freeholder of her ground floor flat in Undy, Kayleigh commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension was finalised in July 2013. The freeholder’s costs were negotiated to less than 650 GBP.

Undy case:

In 2012 we were e-mailed by Ms Chantelle Rogers who, having acquired a newly refurbished flat in Undy in April 1999. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Undy with a long lease were worth £225,400. The mid-range ground rent payable was £45 collected per annum. The lease end date was in 2090. Having 64 years left we calculated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 not including legals.

Undy case:

Ms Hannah Vincent purchased a recently refurbished apartment in Undy in February 2005. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Undy with an extended lease were valued around £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease ended in 2101. Taking into account 75 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.