Why you should commence your Gresford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Gresford property value

There is no doubt about it a leasehold property in Gresford is a wasting asset as a result of the diminishing lease term. If the residual term has, more than one hundred years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. Most flat owners in Gresford will meet the qualifying criteria; that being said a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

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

Almost all mortgage companies will not lend on a lease with less than seventy years unexpired - although this varies between mortgage companies. A buyer will no doubt encounter difficulties in obtaining a mortgage and this will result in your Gresford property being difficult to dispose of or to obtain finance on.

What makes us experts in Gresford lease extensions?

The conveyancing solicitors that we work with procure Gresford 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.

Gresford Lease Extension Example Cases:

Isaac, Gresford, Wrexham,

Isaac was the the leasehold proprietor of a 2 bedroom flat in Gresford on the market with a lease of just over fifty eight years left. Isaac on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give 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. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.

Gresford case:

In 2012 we were e-mailed by Ms R Clarke who, having owned a first floor apartment in Gresford in February 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar homes in Gresford with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed annually. The lease lapsed in 2103. Having 77 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.

Gresford case:

In 2014 we were approached by Dr B Jackson who, having purchased a studio flat in Gresford in January 2006. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Gresford with 100 year plus lease were worth £260,200. The average ground rent payable was £65 billed monthly. The lease ran out on 19 January 2092. Having 66 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus expenses.