Top reasons for Llay lease extension

Why you should commence your Llay lease extension today:

Increase your lease and increase your Llay property value

It’s a harsh truth that a Llay residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Llay property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Llay will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.

Llay property with a lease extension is almost the same value as a freehold

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders may not issue a mortgage with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Llay lease extensions?

The lawyers that we work with procure Llay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Llay Lease Extension Case Summaries:

Ella, Llay, Wrexham,

After protracted discussions with the landlord of her two bedroom apartment in Llay, Ella commenced the lease extension process just as the lease was coming close to the critical eighty-year threshold. The legal work was concluded in March 2010. The freeholder’s fees were kept to an absolute minimum.

Llay case:

Mr V Bell purchased a first floor apartment in Llay in February 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Llay with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed in 2081. Taking into account 55 years remaining we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including professional charges.

Llay case:

Mrs D David bought a garden flat in Llay in April 1997. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Llay with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £50 collected monthly. The lease ran out in 2101. Having 75 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.