Main reasons to commence your Dyserth lease extension

Main reasons to start your Dyserth lease extension today:

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

With a long leasehold premises in Dyserth, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Dyserth with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has less than 80 years remaining, under the current Act the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold properties in Dyserth 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 service charges warrant it.

Lending institutions may decide not to issue a mortgage on a short lease

The propensity since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Dyserth lease extensions?

Retaining our service will provide you increased control over the value of your Dyserth leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Dyserth Lease Extension Case Studies:

Eleanor, Dyserth, Denbighshire,

After lengthy discussions with the freeholder of her ground floor flat in Dyserth, Eleanor started the lease extension process as the 80 year threshold was rapidly coming. The lease extension completed in June 2012. The freeholder’s costs were kept to an absolute minimum.

Dyserth case:

In 2013 we were phoned by Dr Theo Martin who, having owned a first floor flat in Dyserth in August 2012. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparable homes in Dyserth with an extended lease were valued around £257,800. The average ground rent payable was £65 invoiced quarterly. The lease finished in 2091. Considering the 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus professional charges.

Dyserth case:

In 2013 we were e-mailed by Ms Alice Pérez who, having acquired a purpose-built apartment in Dyserth in June 2001. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Similar homes in Dyserth with a long lease were valued around £191,400. The average ground rent payable was £55 collected quarterly. The lease elapsed in 2080. Taking into account 54 years left we estimated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus costs.