Top reasons for Dolwyddelan lease extension

Why you should commence your Dolwyddelan lease extension today:

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

The market value of a leasehold property in Dolwyddelan depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised prior to the 80 year cut off point. Statute entitles Dolwyddelan qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold premises in Dolwyddelan with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders will not issue a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Dolwyddelan?

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

Dolwyddelan Lease Extension Example Cases:

Ollie, Dolwyddelan, Conwy

Last October Ollie, came critically near to the 80-year mark with the lease on his ground floor apartment in Dolwyddelan. Having purchased his flat 18 years previously, the lease term was of no importance. Luckily, he recognised he needed to take steps soon on a lease extension. Ollie was able to extend his lease at the eleventh hour last August. Ollie and the landlord subsequently agreed on sum of £6,000 . If he not met the deadline, the sum would have become more costly by a minimum £950.

Dolwyddelan case:

Last Winter we were called by Mr D Smith , who was assigned a lease of a one bedroom flat in Dolwyddelan in October 2008. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable premises in Dolwyddelan with an extended lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease termination date was on 4 February 2081. Taking into account 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.

Dolwyddelan case:

Ms Jade Smith took over the lease of a newly refurbished apartment in Dolwyddelan in June 2003. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable residencies in Dolwyddelan with an extended lease were worth £300,000. The mid-range ground rent payable was £50 invoiced monthly. The lease terminated in 2101. Given that there were 75 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.