Why you should commence your Dolwyddelan lease extension

Why you should start your Dolwyddelan lease extension today:

Increase your lease and increase your Dolwyddelan property value

The market value of Dolwyddelan leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years

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

Leasehold residencies in Dolwyddelan with over 100 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 situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may not loan monies with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Dolwyddelan lease extensions?

The lawyers that we work with procure Dolwyddelan 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.

Dolwyddelan Lease Extension Case Summaries:

Lucy, Dolwyddelan, Conwy,

Trailing protracted correspondence with the freeholder of her two bedroom apartment in Dolwyddelan, Lucy initiated the lease extension process as the eighty year mark was quickly approaching. The transaction completed in March 2005. The landlord’s fees were restricted to under 600 pounds.

Dolwyddelan case:

Last May we were contacted by Mr and Mrs. R Mitchell , who completed a studio flat in Dolwyddelan in February 2007. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable properties in Dolwyddelan with an extended lease were valued around £240,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease finished on 3 August 2088. Taking into account 62 years left we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of fees.

Dolwyddelan case:

Last month we were called by Dr G Petit , who acquired a first floor apartment in Dolwyddelan in May 2007. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative properties in Dolwyddelan with an extended lease were worth £174,200. The mid-range ground rent payable was £55 billed annually. The lease lapsed in 2077. Considering the 51 years outstanding we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.