Main reasons to commence your Deganwy lease extension

Top reasons for lease extension now:

Increase your lease and increase your Deganwy property value

There is no doubt about it a leasehold property in Deganwy is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Deganwy will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Deganwy with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders will not grant a mortgage on a short lease

Most banks and building societies insist on a lengthy amount of time remaining on any leasehold property before they will contemplate lending on it. Regardless of whether you require a mortgage, you should be conscious that it is probable that someone wanting to buy your property in the future might well do, so where they are not able to secure a mortgage, then the value of your property will likely suffer. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

Regardless of whether you are a tenant or a freeholder in Deganwy,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Deganwy valuers.

Deganwy Lease Extension Case Studies:

Rory, Deganwy, Conwy

Last year Rory, came seriously near to the 80-year threshold with the lease on his one bedroom flat in Deganwy. Having purchased his property twenty years ago, the length of the lease was of no bearing. As luck would have it, he recognised he needed to take action soon on a lease extension. Rory arranged for a lease extension at the eleventh hour last March. Rory and the freeholder via the managing agents eventually settled on a premium of £5,000 . If he not met the deadline, the sum would have increased by at least £1,150.

Deganwy case:

In 2010 we were phoned by Mr and Mrs. L Sharif who, having was assigned a lease of a ground floor flat in Deganwy in February 2012. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable flats in Deganwy with a long lease were valued about £275,000. The average ground rent payable was £65 billed every twelve months. The lease finished in 2094. Taking into account 68 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.

Deganwy case:

Mr Noah Simon bought a ground floor flat in Deganwy in July 2005. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable homes in Deganwy with 100 year plus lease were worth £208,600. The average ground rent payable was £60 collected every twelve months. The lease finished in 2083. Having 57 years unexpired we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.