Main reasons to commence your Cardiff Bay lease extension

Top reasons for lease extension now:

A Cardiff Bay leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Cardiff Bay residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Cardiff Bay property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Cardiff Bay will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.

Lenders will not grant a mortgage with a short lease

Lenders are tightening their criteria and a meaningful number now require flats to have at least sixty if not seventy years left at the expiry of the mortgage. Given that a number of flats in Cardiff Bay were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to obtain a mortgage.

Why use us for your lease extension in Cardiff Bay?

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

Cardiff Bay Lease Extension Example Cases:

Lucy, Cardiff Bay, Cardiff,

Trailing protracted negotiations with the freeholder of her two bedroom flat in Cardiff Bay, Lucy started the lease extension process as the 80 year mark was swiftly approaching. The transaction was finalised in March 2005. The freeholder’s charges were restricted to less than 450 pounds.

Cardiff Bay case:

Mr and Mrs. A Ramírez was assigned a lease of a studio apartment in Cardiff Bay in October 2000. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Identical residencies in Cardiff Bay with an extended lease were valued about £208,200. The average ground rent payable was £65 invoiced per annum. The lease finished in 2087. Having 61 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including costs.

Cardiff Bay case:

Last Spring we were called by Mr and Mrs. G Flores , who took over the lease of a recently refurbished apartment in Cardiff Bay in May 2012. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparative residencies in Cardiff Bay with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 7 November 2098. Considering the 72 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.