Top reasons for Beaumaris lease extension

Main reasons to commence your Beaumaris lease extension today:

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

The only way is down when it comes to Beaumaris lease terms. Beaumaris leaseholds that have a remaining term shorter than 80 years will reduce in value at a rapid rate, and the cost to extend your lease will rise.

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

It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.

Lenders may not loan monies on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

The lawyers that we work with undertake Beaumaris lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Beaumaris Lease Extension Case Studies:

Lewis, Beaumaris, Isle Of Anglesey,

Lewis was the the leasehold owner of a studio flat in Beaumaris on the market with a lease of fraction over 61 years unexpired. Lewis on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Lewis to exercise his statutory right. Lewis procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Beaumaris case:

In 2010 we were e-mailed by Dr L Laurent who, having acquired a garden flat in Beaumaris in October 1999. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar properties in Beaumaris with a long lease were in the region of £210,600. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed on 7 June 2088. Taking into account 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.

Beaumaris case:

Dr D Thompson moved into a one bedroom apartment in Beaumaris in September 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Beaumaris with a long lease were valued about £260,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2099. Considering the 73 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.