Main reasons to commence your Llangollen lease extension

Main reasons to commence your Llangollen lease extension today:

Increase your lease and increase your Llangollen property value

The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Llangollen can extend the lease for a further 90 years in accordance with legislation. Please think carefully before delaying your Llangollen lease extension. Putting off that expense now simply escalates the premium you will eventually have to pay for a lease extension.

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

Leasehold premises in Llangollen with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders may not finance a property on a short lease

Most banks and building societies will be unwilling to lend on a lease with under seventy years left to run - although this varies from lender to lender. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this could result in your Llangollen property being difficult to sell or to obtain finance on.

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

Using our service gives you enhanced control over the value of your Llangollen leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Llangollen Lease Extension Example Cases:

Blake, Llangollen, Denbighshire,

Blake was the the leasehold proprietor of a studio apartment in Llangollen being marketed with a lease of fraction over fifty eight years unexpired. Blake informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.

Llangollen case:

Mrs W Cooper was assigned a lease of a recently refurbished flat in Llangollen in October 2006. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical premises in Llangollen with a long lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended in 2097. Considering the 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.

Llangollen case:

In 2013 we were called by Mr and Mrs. T Anderson who, having purchased a one bedroom apartment in Llangollen in September 2003. The question was if we could estimate the premium could be to prolong the lease by an additional years. Identical flats in Llangollen with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish in 2077. Given that there were 51 years left we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of costs.