Why you should commence your Meliden lease extension

Why you should commence your Meliden lease extension today:

A Meliden lease depreciates with the years remaining on the lease.

With a long leasehold premises in Meliden, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years remaining. Anyone in Meliden with a lease approaching 81 years left should seriously consider extending it sooner than later. When the lease term has less than eighty years left, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

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

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions will not loan monies with a short lease

Mortgage companies are tightening their criteria and a meaningful number now require flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Considering a number of flats in Meliden were created in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to get a mortgage.

Why use us for your lease extension in Meliden?

Regardless of whether you are a tenant or a landlord in Meliden,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 in-depth market knowledge and the close ties they enjoy with Meliden valuers.

Meliden Lease Extension Case Summaries:

Kai, Meliden, Denbighshire,

Kai was the the leasehold owner of a studio apartment in Meliden being sold with a lease of just over sixty years unexpired. Kai informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.

Meliden case:

Mrs Alice Girard owned a studio apartment in Meliden in June 2012. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar flats in Meliden with an extended lease were in the region of £189,000. The mid-range ground rent payable was £55 collected monthly. The lease concluded on 23 November 2079. Considering the 53 years left we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.

Meliden case:

In 2011 we were phoned by Mr Isaac Roux who, having completed a ground floor flat in Meliden in July 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Meliden with an extended lease were worth £290,000. The average amount of ground rent was £45 billed every twelve months. The lease lapsed in 2099. Given that there were 73 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.