Top reasons for Aberdovey lease extension

Why you should commence your Aberdovey lease extension today:

Increase your lease and increase your Aberdovey property value

With a long leasehold premises in Aberdovey, you are actually buying a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Anyone in Aberdovey with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not lend with a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Aberdovey lease extensions?

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

Aberdovey Lease Extension Example Cases:

Georgia, Aberdovey, Gwynedd,

Off the back of protracted discussions with the freeholder of her garden flat in Aberdovey, Georgia initiated the lease extension process as the 80 year deadline was fast approaching. The transaction completed in February 2013. The landlord’s costs were negotiated to under 550 pounds.

Aberdovey case:

In 2013 we were e-mailed by Mr and Mrs. H Norbert who, having was assigned a lease of a studio flat in Aberdovey in January 1995. The dilemma was if we could approximate the price would be for a 90 year lease extension. Similar flats in Aberdovey with an extended lease were worth £280,000. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed on 3 February 2105. Having 79 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.

Aberdovey case:

In 2011 we were e-mailed by Dr I Green who, having purchased a purpose-built flat in Aberdovey in October 2005. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable residencies in Aberdovey with a long lease were in the region of £193,400. The average ground rent payable was £65 billed monthly. The lease came to a finish on 27 July 2085. Considering the 59 years as a residual term we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.