Why you should commence your Barmouth lease extension

Why you should commence your Barmouth lease extension today:

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

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Barmouth may extend the lease for an additional ninety years under statute. Please think carefully before delaying your Barmouth lease extension. Shelving that expense now simply escalates the premium you will eventually be required to pay for a lease extension.

Barmouth property with a lease extension is almost the same value as a freehold

Leasehold properties in Barmouth with more than one hundred years left on the lease are sometimes regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may decide not to loan monies on a short lease

Lending institutions have specific criteria when lending funds charged on leasehold homes. Some will simply not lend at all once the remaining lease term slips below a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are seeking to remortgage your Barmouth home.

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

Retaining our service will provide you enhanced control over the value of your Barmouth leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Barmouth Lease Extension Case Summaries:

Dexter, Barmouth, Gwynedd,

Dexter was the the leasehold owner of a high value apartment in Barmouth being sold with a lease of fraction over sixty years outstanding. Dexter informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.

Barmouth case:

Last Christmas we were called by Mr and Mrs. T Rodríguez , who moved into a ground floor flat in Barmouth in June 2002. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Barmouth with 100 year plus lease were valued around £227,800. The average ground rent payable was £45 collected per annum. The lease expired on 17 October 2091. Having 65 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.

Barmouth case:

Last Christmas we were phoned by Mr and Mrs. J Harris , who took over the lease of a recently refurbished apartment in Barmouth in March 2007. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Barmouth with 100 year plus lease were worth £275,000. The average ground rent payable was £55 invoiced per annum. The lease elapsed in 2102. Given that there were 76 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.