Why you should commence your Dolgellau lease extension

Main reasons to commence your Dolgellau lease extension today:

A Dolgellau lease depreciates with the years remaining on the lease.

When it comes to long leasehold premises in Dolgellau, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Leasehold owners in Dolgellau with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has below eighty years remaining, under the relevant statute the landlord can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.

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

Leasehold residencies in Dolgellau with over 100 years remaining 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders will not issue a mortgage on a short lease

Most banks and building societies will be unwilling to lend on a lease with under seventy years remaining - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this could result in your Dolgellau property becoming difficult to sell or refinance.

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

Engaging our service will provide you better control over the value of your Dolgellau leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Dolgellau Lease Extension Case Summaries:

Lauren, Dolgellau, Gwynedd,

Trailing lengthy discussions with the freeholder of her studio flat in Dolgellau, Lauren initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in October 2005. The landlord’s costs were negotiated to less than 600 GBP.

Dolgellau case:

Last month we were called by Mr and Mrs. E Leroy , who owned a basement apartment in Dolgellau in September 1995. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative homes in Dolgellau with a long lease were in the region of £255,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded on 11 May 2097. Considering the 71 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.

Dolgellau case:

Last Winter we were phoned by Dr Daniel Bell , who completed a newly refurbished flat in Dolgellau in November 2006. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative residencies in Dolgellau with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2077. Having 51 years unexpired we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 not including fees.