Why you should start your Goodwick lease extension

Top reasons for lease extension now:

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

Goodwick leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Goodwick will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Goodwick with over one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not issue a mortgage on a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with under seventy years unexpired - although this varies from lender to lender. A buyer will undoubtedly find it difficult to obtain a mortgage and this will result in your Goodwick property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Goodwick lease extensions?

The conveyancers that we work with procure Goodwick 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 conveyancer we work with provide it.

Goodwick Lease Extension Example Cases:

James, Goodwick, Pembrokeshire,

James was the the leasehold proprietor of a high value flat in Goodwick being marketed with a lease of a few days over 59 years remaining. James informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to exercise his statutory right. James obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.

Goodwick case:

In 2009 we were e-mailed by Mr and Mrs. F Roux who, having completed a garden flat in Goodwick in February 1995. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparable flats in Goodwick with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 collected yearly. The lease terminated in 2101. Taking into account 75 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.

Goodwick case:

Mr G Young bought a purpose-built flat in Goodwick in January 1998. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Goodwick with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £65 collected per annum. The lease lapsed on 22 February 2081. Having 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.