Deganwy leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Deganwy residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Deganwy you really ought to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Deganwy flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Deganwy with in excess of one hundred years outstanding on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society |
The conveyancers that we work with handle Deganwy 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.
Nathaniel was the the leasehold owner of a studio apartment in Deganwy on the market with a lease of a little over sixty years remaining. Nathaniel informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr B Wood acquired a one bedroom apartment in Deganwy in July 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar residencies in Deganwy with 100 year plus lease were valued about £250,400. The mid-range ground rent payable was £65 billed every twelve months. The lease ran out in 2090. Taking into account 64 years unexpired we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus expenses.
Last year we were approach by Dr N Lambert , who was assigned a lease of a newly refurbished apartment in Deganwy in June 2000. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Deganwy with a long lease were worth £189,000. The average amount of ground rent was £55 collected yearly. The lease ran out on 27 April 2079. Having 53 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.