Why you should start your Bethesda lease extension

Why you should commence your Bethesda lease extension today:

Increase your lease and increase your Bethesda property value

The value of Bethesda leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold properties in Bethesda with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not lend on a short lease

Mortgage lenders have set criteria when loaning monies charged on leasehold property. Many will simply refrain from lending at all once the residual lease term falls under a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are seeking to refinance your Bethesda property.

Why use us for your lease extension in Bethesda?

The lawyers that we work with undertake Bethesda 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 conveyancing solicitor we work with provide it.

Bethesda Lease Extension Example Cases:

Harvey, Bethesda, Gwynedd,

Harvey was the the leasehold owner of a high value apartment in Bethesda on the market with a lease of a few days over 61 years unexpired. Harvey informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.

Bethesda case:

In 2010 we were phoned by Mr Eliot Thompson who, having purchased a purpose-built apartment in Bethesda in November 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Bethesda with an extended lease were worth £220,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease finished in 2090. Considering the 64 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including expenses.

Bethesda case:

In 2014 we were contacted by Ms N Thomas who, having owned a one bedroom flat in Bethesda in September 2004. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable flats in Bethesda with an extended lease were in the region of £270,000. The average ground rent payable was £55 collected every twelve months. The lease elapsed in 2101. Given that there were 75 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.