Why you should commence your Llanberis lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Llanberis is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded in advance of the 80 year cut off point. Leasehold Reform legislation entitles Llanberis qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold residencies in Llanberis with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders will not issue a mortgage with a short lease

Mortgage companies do not like short residential leases. You are likely to encounter problems where you want to sell your flat in Llanberis if the remaining term of your lease is under the criteria set by the majority of banks and building societies. Different mortgage companies have varying criteria but on the whole they are looking for an unexpired term of at least 65 years.

Why use us for your lease extension in Llanberis?

Irrespective of whether you are a tenant or a freeholder in Llanberis,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 experience and the close ties they enjoy with Llanberis valuers.

Llanberis Lease Extension Example Cases:

Ali, Llanberis, Gwynedd

In recent months Ali, came perilously near to the eighty-year mark with the lease on his purpose- built flat in Llanberis. Having purchased his home 18 years previously, the unexpired term was of no importance. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Ali arranged for a lease extension at the eleventh hour in May. Ali and the freeholder via the management company subsequently agreed on an amount of £6,000 . If he had missed the deadline, the amount would have escalated by at least £900.

Llanberis case:

Last month we were contacted by Dr Catherine Leroy , who acquired a ground floor apartment in Llanberis in January 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable flats in Llanberis with 100 year plus lease were worth £225,800. The average ground rent payable was £60 collected per annum. The lease termination date was in 2086. Having 60 years as a residual term we approximated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.

Llanberis case:

Last Christmas we were contacted by Dr N Young , who completed a purpose-built flat in Llanberis in November 2003. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar premises in Llanberis with a long lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease terminated on 13 August 2106. Having 80 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.