Why you should commence your Moelfre lease extension

Top reasons for lease extension now:

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

Unfortunately that a Moelfre residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Moelfre property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Moelfre will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lenders will not issue a mortgage with a short lease

Mortgage lenders have set criteria when loaning funds charged on leasehold homes. Some will simply refuse lend at all once an unexpired lease term drops under a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than 75 years as adequate security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Moelfre home.

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

The lawyers that we work with procure Moelfre 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 conveyancer we work with provide it.

Moelfre Lease Extension Example Cases:

Ellen, Moelfre, Isle Of Anglesey,

Off the back of protracted discussions with the landlord of her two bedroom apartment in Moelfre, Ellen started the lease extension process just as her lease was approaching the crucial 80-year threshold. The legal work was finalised in October 2006. The freeholder’s fees were negotiated to slightly above 550 pounds.

Moelfre case:

Mr and Mrs. J Flores bought a recently refurbished flat in Moelfre in April 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Moelfre with a long lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced annually. The lease concluded in 2078. Taking into account 52 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 plus costs.

Moelfre case:

Mr and Mrs. P Moreau completed a ground floor apartment in Moelfre in October 2011. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable residencies in Moelfre with 100 year plus lease were worth £218,000. The average ground rent payable was £45 billed quarterly. The lease ran out in 2089. Having 63 years remaining we calculated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including professional charges.