Why you should commence your Kinmel Bay lease extension

Main reasons to start your Kinmel Bay lease extension today:

Increase your lease and increase your Kinmel Bay property value

When it comes to long leasehold premises in Kinmel Bay, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years remaining. Anyone in Kinmel Bay with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years left, under the current legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold residencies in Kinmel Bay with over 100 years left 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 situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to lend with a short lease

Most high street banks are tightening their criteria and a meaningful number now want flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. Considering many flats in Kinmel Bay were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Kinmel Bay lease extensions?

Using our service will provide you better control over the value of your Kinmel Bay leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Kinmel Bay Lease Extension Case Summaries:

Kai, Kinmel Bay, Conwy

Half a year ago Kai, came very close to the 80-year threshold with the lease on his purpose- built flat in Kinmel Bay. In buying his home two decades ago, the unexpired term was of minimal concern. Luckily, he noticed he needed to take steps soon on a lease extension. Kai arranged for a lease extension at the eleventh hour in April. Kai and the freeholder subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the figure would have increased by a minimum £925.

Kinmel Bay case:

Last Autumn we were approach by Mr and Mrs. K Lewis , who acquired a basement apartment in Kinmel Bay in February 2005. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Similar flats in Kinmel Bay with a long lease were worth £265,000. The average amount of ground rent was £50 billed annually. The lease terminated on 20 August 2099. Taking into account 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.

Kinmel Bay case:

In 2014 we were phoned by Mr and Mrs. U Morel who, having owned a purpose-built flat in Kinmel Bay in August 2001. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative properties in Kinmel Bay with a long lease were valued about £264,000. The mid-range amount of ground rent was £60 billed monthly. The lease terminated on 22 October 2079. Considering the 53 years unexpired we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus legals.