Why you should commence your Glan Conwy lease extension

Why you should start your Glan Conwy lease extension today:

A Glan Conwy lease depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Glan Conwy have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Glan Conwy lease extension. Shelving that expense today simply increases the price you will ultimately have to pay to extend the lease.

Glan Conwy property with a lease extension has roughly the same value as a freehold

Leasehold premises in Glan Conwy with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions will not loan monies on a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Glan Conwy?

Engaging our service will provide you better control over the value of your Glan Conwy leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Glan Conwy Lease Extension Example Cases:

Edward, Glan Conwy, Conwy,

Edward owned a 2 bedroom flat in Glan Conwy being marketed with a lease of just over sixty years unexpired. Edward on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Glan Conwy case:

In 2014 we were approached by Mr and Mrs. W Clarke who, having owned a one bedroom apartment in Glan Conwy in April 2003. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative premises in Glan Conwy with a long lease were in the region of £246,800. The average ground rent payable was £60 collected yearly. The lease ended on 20 January 2076. Considering the 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of professional charges.

Glan Conwy case:

In 2009 we were contacted by Mr and Mrs. V Gómez who, having owned a first floor apartment in Glan Conwy in April 2007. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative properties in Glan Conwy with an extended lease were in the region of £208,200. The average amount of ground rent was £65 billed quarterly. The lease termination date was in 2087. Given that there were 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.