Main reasons to commence your Pentyrch lease extension

Main reasons to start your Pentyrch lease extension today:

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

There is no doubt about it a leasehold flat or house in Pentyrch is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Pentyrch will meet the qualifying criteria; however a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Pentyrch with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions will not lend on a short lease

Banks and Building Societies have specific criteria when lending monies charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term falls beneath a certain unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant where you are wanting to remortgage your Pentyrch home.

What makes us experts in Pentyrch lease extensions?

The lawyers that we work with undertake Pentyrch 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.

Pentyrch Lease Extension Case Studies:

Lucy, Pentyrch, Cardiff,

Trailing unsuccessful correspondence with the landlord of her studio apartment in Pentyrch, Lucy commenced the lease extension process as the 80 year mark was rapidly coming. The lease extension was concluded in June 2014. The freeholder’s costs were kept to an absolute minimum.

Pentyrch case:

Last year we were called by Dr O Bailey , who was assigned a lease of a newly refurbished apartment in Pentyrch in June 2010. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparative premises in Pentyrch with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ended in 2098. Taking into account 72 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.

Pentyrch case:

Last Spring we were contacted by Mr and Mrs. V Lee , who purchased a basement apartment in Pentyrch in July 2003. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable flats in Pentyrch with 100 year plus lease were worth £261,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out in 2078. Taking into account 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of professional charges.