Main reasons to start your Deganwy lease extension

Why you should commence your Deganwy lease extension today:

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

Deganwy leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Deganwy tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Deganwy you should investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Deganwy leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay

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

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lenders may not issue a mortgage on a short lease

Most mortgage lenders will not lend on a lease with less than seventy years unexpired - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this could result in your Deganwy property becoming difficult to dispose of or to obtain finance on.

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:

Callum, Deganwy, Conwy

Two years ago Callum, came precariously near to the 80-year threshold with the lease on his garden apartment in Deganwy. In buying his home 18 years ago, the unexpired term was of no interest. Luckily, he became aware that he needed to take action soon on Extending the lease. Callum arranged for a lease extension at the eleventh hour in July. Callum and the freeholder ultimately settled on the final figure of £5,000 . If he not met the deadline, the figure would have escalated by at least £850.

Deganwy case:

In 2011 we were called by Mrs O Michel who, having moved into a garden apartment in Deganwy in September 1995. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Deganwy with 100 year plus lease were worth £189,000. The mid-range ground rent payable was £55 collected annually. The lease concluded in 2079. Taking into account 53 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.

Deganwy case:

Mrs Mia Allen was assigned a lease of a ground floor apartment in Deganwy in January 2008. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Identical premises in Deganwy with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease concluded on 1 March 2099. Considering the 73 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.