Why you should start your Caernarfon lease extension

Why you should start your Caernarfon lease extension today:

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

Caernarfon residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

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

Leasehold residencies in Caernarfon with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may not lend with a short lease

Banks and building societies are really clamping down as regards to homes in Caernarfon with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus restricting your market.

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

Lease extensions in Caernarfon can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Caernarfon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Caernarfon Lease Extension Example Cases:

Dexter, Caernarfon, Gwynedd,

Dexter owned a 2 bedroom flat in Caernarfon on the market with a lease of just over 72 years left. Dexter on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

Caernarfon case:

Dr P Bertrand took over the lease of a basement apartment in Caernarfon in July 1995. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative homes in Caernarfon with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected quarterly. The lease terminated on 26 January 2101. Having 75 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.

Caernarfon case:

Mr A Morris moved into a one bedroom apartment in Caernarfon in May 2004. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar residencies in Caernarfon with an extended lease were in the region of £250,400. The average amount of ground rent was £65 billed quarterly. The lease finished in 2090. Taking into account 64 years left we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including costs.