Main reasons to start your Bangor lease extension

Why you should start your Bangor lease extension today:

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

The re-sale value of a leasehold property in Bangor depends on how long the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded ahead of the 80 year threshold. Current legislation enables Bangor qualifying lessees to an additional term of ninety years over and above the existing term, at a peppercorn rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not loan monies with a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Even if you don't need a mortgage, you should keep in mind that it is probable that someone wanting to acquire your property in the future might well do, so if they can't obtain a mortgage, then the value of your property will likely suffer. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

What makes us experts in Bangor lease extensions?

Regardless of whether you are a tenant or a landlord in Bangor,the lease extension lawyers 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 Bangor valuers.

Bangor Lease Extension Case Studies:

Evan, Bangor, Gwynedd

In 2014 Evan, came critically close to the eighty-year threshold with the lease on his ground floor apartment in Bangor. In buying his flat two decades ago, the lease term was of minimal concern. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Evan arranged for a lease extension just under the wire last June. Evan and the landlord subsequently agreed on sum of £5,000 . If the lease had slipped below 80 years, the amount would have increased by a minimum £900.

Bangor case:

Mr and Mrs. F Mercier bought a basement apartment in Bangor in March 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Bangor with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished in 2090. Having 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of costs.

Bangor case:

In 2012 we were called by Dr E Díaz who, having moved into a garden apartment in Bangor in February 2000. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar homes in Bangor with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 collected annually. The lease ended on 25 June 2101. Given that there were 75 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.