Main reasons to start your Llanbedrog lease extension

Why you should commence your Llanbedrog lease extension today:

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

The market value of a leasehold property in Llanbedrog depends on how long the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded ahead of the 80 year cut off point. Current legislation enables Llanbedrog qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to finance a property on a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past lenders were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Llanbedrog?

Engaging our service gives you better control over the value of your Llanbedrog leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Llanbedrog Lease Extension Example Cases:

Arthur, Llanbedrog, Gwynedd

In 2014 Arthur, came critically near to the eighty-year mark with the lease on his basement flat in Llanbedrog. In buying his property two decades ago, the length of the lease was of little relevance. Luckily, he recognised he needed to take steps soon on Extending the lease. Arthur extended the lease just under the wire in May. Arthur and the freeholder in the end agreed on sum of £5,000 . If the lease had fallen lower than eighty years, the premium would have increased by at least £975.

Llanbedrog case:

Last Christmas we were approach by Mrs P Gray , who took over the lease of a newly refurbished flat in Llanbedrog in June 2001. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar premises in Llanbedrog with an extended lease were valued about £260,200. The mid-range amount of ground rent was £65 collected monthly. The lease elapsed in 2092. Taking into account 66 years left we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus legals.

Llanbedrog case:

Last Spring we were contacted by Mrs Hannah Thompson , who bought a one bedroom apartment in Llanbedrog in June 1997. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Llanbedrog with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded on 18 March 2081. Taking into account 55 years left we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus fees.