Stop! Your Lease Extension in Aberdovey Could Be FREE

Get a Free Case Review
Many leaseholders in Aberdovey are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Aberdovey has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to commence your Aberdovey lease extension

Main reasons to commence your Aberdovey lease extension today:

A Aberdovey leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Aberdovey residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Aberdovey property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Aberdovey will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.

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

Leasehold premises in Aberdovey with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies will not lend on a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Halifax Minimum 70 years from the date of the mortgage.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Aberdovey lease extensions?

Using our service gives you increased control over the value of your Aberdovey leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Aberdovey Lease Extension Example Cases:

Hannah, Aberdovey, Gwynedd,

Off the back of protracted discussions with the freeholder of her purpose-built flat in Aberdovey, Hannah initiated the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction was finalised in September 2015. The landlord’s charges were negotiated to slightly above five hundred pounds.

Aberdovey case:

In 2010 we were contacted by Mr and Mrs. Y Harris who, having was assigned a lease of a newly refurbished apartment in Aberdovey in February 2012. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical homes in Aberdovey with 100 year plus lease were worth £220,400. The mid-range ground rent payable was £45 collected per annum. The lease concluded on 7 May 2090. Considering the 64 years unexpired we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of expenses.

Aberdovey case:

In 2014 we were contacted by Mr Y Bonnet who, having took over the lease of a studio flat in Aberdovey in February 2009. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in Aberdovey with 100 year plus lease were worth £270,000. The average ground rent payable was £55 invoiced monthly. The lease ran out in 2101. Considering the 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.