Why you should start your Chirk lease extension

Main reasons to start your Chirk lease extension today:

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

For those whose Chirk flat is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.

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

Leasehold properties in Chirk with more than one hundred years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may not grant a mortgage on a short lease

Mortgage companies are tightening their criteria and a meaningful number now want flats to have a minimum of sixty if not seventy years remaining at the end of the mortgage. Given that many flats in Chirk were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Chirk lease extensions?

Irrespective of whether you are a tenant or a freeholder in Chirk,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chirk valuers.

Chirk Lease Extension Case Studies:

David, Chirk, Wrexham,

David owned a high value flat in Chirk being sold with a lease of a little over 59 years remaining. David informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were David to exercise his statutory right. David obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.

Chirk case:

In 2010 we were called by Dr Jason François who, having purchased a first floor apartment in Chirk in July 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical properties in Chirk with an extended lease were worth £270,000. The average amount of ground rent was £55 invoiced monthly. The lease terminated in 2101. Considering the 75 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.

Chirk case:

In 2013 we were approached by Mr and Mrs. M Dupont who, having was assigned a lease of a one bedroom apartment in Chirk in October 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical residencies in Chirk with 100 year plus lease were in the region of £168,800. The mid-range amount of ground rent was £60 collected monthly. The lease finished in 2081. Having 55 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.