Main reasons to start your Gresford lease extension

Top reasons for lease extension now:

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

Gresford leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Gresford will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.

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

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

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

Most banks have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly below 75 years as they are regarded as inadequate for lending purposes.

Get in touch with one of our Gresford lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Gresford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gresford valuers.

Gresford Lease Extension Case Studies:

Amy, Gresford, Wrexham,

Off the back of protracted negotiations with the landlord of her one bedroom flat in Gresford, Amy commenced the lease extension process just as her lease was approaching the crucial 80-year mark. The legal work was finalised in April 2012. The freeholder’s costs were kept to an absolute minimum.

Gresford case:

Last month we were contacted by Dr R Edwards , who bought a one bedroom flat in Gresford in November 2010. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparative homes in Gresford with an extended lease were valued about £257,800. The average amount of ground rent was £65 invoiced yearly. The lease finished in 2091. Taking into account 65 years remaining we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.

Gresford case:

Mr and Mrs. O Ricardo completed a one bedroom flat in Gresford in March 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Gresford with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2080. Having 54 years unexpired we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including legals.