Main reasons to commence your Corwen lease extension

Top reasons for lease extension now:

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

Corwen leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Corwen tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Corwen you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Corwen with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders may decide not to finance a property on a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold homes. Some will simply refuse lend at all once the residual lease term drops beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than seventy years as adequate security. As well as impacting your ability to sell, it is also relevant where you are wanting to remortgage your Corwen home.

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

The lawyers that we work with handle Corwen 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.

Corwen Lease Extension Example Cases:

Edward, Corwen, Denbighshire

Last year Edward, started to get near to the 80-year mark with the lease on his first floor apartment in Corwen. Having bought his flat twenty years ago, the length of the lease was of minimal interest. Thankfully, he realised he needed to take steps soon on a lease extension. Edward was able to extend his lease at the eleventh hour last May. Edward and the freeholder via the managing agents ultimately agreed on an amount of £5,000 . If he had missed the deadline, the figure would have gone up by a minimum £875.

Corwen case:

Last year we were called by Dr C Alexander , who moved into a ground floor apartment in Corwen in October 2003. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative residencies in Corwen with 100 year plus lease were worth £265,000. The average amount of ground rent was £55 collected annually. The lease elapsed in 2100. Given that there were 74 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.

Corwen case:

Mr and Mrs. N Vincent acquired a first floor apartment in Corwen in July 2009. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Corwen with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 billed annually. The lease ran out in 2080. Taking into account 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus legals.