Why you should commence your Ewloe lease extension

Main reasons to start your Ewloe lease extension today:

Increase your lease and increase your Ewloe property value

Ewloe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ewloe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ewloe you must see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Ewloe leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold properties in Ewloe with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not issue a mortgage with a short lease

Mortgage companies are really clamping down as regards to properties in Ewloe with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing the amount of potential buyers.

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

Retaining our service will provide you enhanced control over the value of your Ewloe leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Ewloe Lease Extension Case Studies:

Megan, Ewloe, Flintshire,

After protracted discussions with the freeholder of her purpose-built flat in Ewloe, Megan started the lease extension process as the eighty year deadline was swiftly approaching. The transaction was concluded in January 2014. The landlord’s costs were kept to an absolute minimum.

Ewloe case:

Last Spring we were phoned by Dr M Martínez , who took over the lease of a one bedroom apartment in Ewloe in November 2003. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Ewloe with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease termination date was in 2077. Having 51 years outstanding we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.

Ewloe case:

In 2011 we were e-mailed by Dr S Morel who, having purchased a purpose-built flat in Ewloe in February 2003. The question was if we could estimate the price could be to prolong the lease by an additional years. Identical premises in Ewloe with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 collected per annum. The lease ended on 8 March 2097. Given that there were 71 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.