Why you should start your Holywell lease extension

Top reasons for lease extension now:

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

The nearer a residential lease in Holywell nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 100 years remaining then this decrease may be fractional however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Holywell will qualify for this right; however a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.

Lending institutions may decide not to lend with a short lease

Banks and building societies are making their criteria more stringent and many now expect flats to have at least 60 if not 70 years left at the end of the mortgage. Given that a number of flats in Holywell were created in the fifties, sixties and seventies as a result many now need to be extended if they if they are to be mortgageable.

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

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

Holywell Lease Extension Example Cases:

Lewis, Holywell, Flintshire,

Lewis owned a high value flat in Holywell on the market with a lease of a little over 72 years unexpired. Lewis informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis procured expert legal guidance and secured satisfactory deal informally and readily saleable.

Holywell case:

Dr D Howard owned a studio apartment in Holywell in May 1995. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable premises in Holywell with 100 year plus lease were worth £275,000. The average ground rent payable was £45 collected per annum. The lease lapsed on 27 March 2095. Considering the 69 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.

Holywell case:

Mrs Laura Fournier acquired a ground floor apartment in Holywell in March 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Holywell with an extended lease were valued around £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed in 2084. Considering the 58 years left we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.