Main reasons to commence your Acrefair lease extension

Top reasons for lease extension now:

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

On the balance of probabilities where you own a flat in Acrefair you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lenders may decide not to grant a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This will cause difficulties as and when you wish to market or refinance your flat as it will be effectively unmortgageable. Even though you might not have an imminent plan to sell but when you do your purchaser will have to wait a couple of years before being able to initiate the legal procedures for a lease extension.

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

Irrespective of whether you are a tenant or a freeholder in Acrefair,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Acrefair valuers.

Acrefair Lease Extension Case Studies:

Samuel, Acrefair, Wrexham,

Samuel was the the leasehold owner of a 2 bedroom flat in Acrefair on the market with a lease of a little over 61 years remaining. Samuel on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Acrefair case:

Last month we were approach by Mrs Hollie David , who acquired a purpose-built flat in Acrefair in June 2006. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar premises in Acrefair with an extended lease were valued around £210,600. The average ground rent payable was £45 collected per annum. The lease terminated in 2088. Given that there were 62 years left we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including expenses.

Acrefair case:

In 2010 we were approached by Mr and Mrs. I Moore who, having completed a recently refurbished flat in Acrefair in November 2000. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Acrefair with 100 year plus lease were worth £265,000. The average ground rent payable was £50 billed per annum. The lease lapsed in 2099. Considering the 73 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.