Main reasons to commence your Cardiff Bay lease extension

Top reasons for lease extension now:

Increase your lease and increase your Cardiff Bay property value

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Cardiff Bay. Inevitably, the length of lease left shortens over time. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Cardiff Bay have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give due attention before putting off your Cardiff Bay lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not lend on a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Cardiff Bay?

Engaging our service will provide you better control over the value of your Cardiff Bay leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Cardiff Bay Lease Extension Case Studies:

Edward, Cardiff Bay, Cardiff,

Edward owned a conversion flat in Cardiff Bay being sold with a lease of a few days over 59 years left. Edward informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Edward to exercise his statutory right. Edward procured expert advice and secured an acceptable resolution informally and sell the property.

Cardiff Bay case:

Last year we were phoned by Dr S Martínez , who bought a first floor apartment in Cardiff Bay in February 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Cardiff Bay with a long lease were worth £280,000. The average ground rent payable was £55 invoiced annually. The lease ran out on 13 September 2103. Having 77 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.

Cardiff Bay case:

Dr Daniel Nguyen took over the lease of a first floor flat in Cardiff Bay in October 1997. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical flats in Cardiff Bay with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced annually. The lease came to a finish in 2083. Considering the 57 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.