Why you should start your Llangollen lease extension

Main reasons to start your Llangollen lease extension today:

Increase your lease and increase your Llangollen property value

Llangollen leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Llangollen will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.

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

It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to finance a property on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Llangollen?

Irrespective of whether you are a tenant or a freeholder in Llangollen,the lease extension experts 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 Llangollen valuers.

Llangollen Lease Extension Example Cases:

Luca, Llangollen, Denbighshire,

Luca was the the leasehold owner of a 2 bedroom flat in Llangollen being marketed with a lease of just over 61 years left. Luca informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Luca to invoke his statutory right. Luca procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.

Llangollen case:

In 2014 we were approached by Mr and Mrs. B Sharif who, having bought a studio apartment in Llangollen in November 2003. 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. Identical flats in Llangollen with an extended lease were valued about £256,600. The average amount of ground rent was £60 collected monthly. The lease expired in 2078. Having 52 years left we estimated the premium to the freeholder to extend the lease to be between £41,800 and £48,400 not including costs.

Llangollen case:

In 2012 we were phoned by Mr Y Morgan who, having moved into a garden flat in Llangollen in August 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical flats in Llangollen with an extended lease were in the region of £218,000. The average amount of ground rent was £45 billed monthly. The lease lapsed in 2089. Having 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including legals.