Main reasons to commence your Morfa Nefyn lease extension

Why you should commence your Morfa Nefyn lease extension today:

A Morfa Nefyn leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Morfa Nefyn can extend the lease for a further 90 years in accordance with legislation. Please think carefully before delaying your Morfa Nefyn lease extension. Putting off the costs now simply escalates the amount you will ultimately have to pay to extend the lease.

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

It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This may cause difficulties once you wish to dispose of or refinance your property as it will be effectively unmortgageable. You might not have an immediate plan to sell but when you do your purchaser will need to hold off for a couple of years before they can exercise the right to a an extension to the lease.

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

The conveyancers that we work with undertake Morfa Nefyn 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 lawyer we work with provide it.

Morfa Nefyn Lease Extension Case Studies:

Ethan, Morfa Nefyn, Gwynedd,

Ethan was the the leasehold owner of a studio apartment in Morfa Nefyn on the market with a lease of a little over fifty eight years left. Ethan informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Morfa Nefyn case:

Last November we were approach by Mr and Mrs. P Gómez , who moved into a basement flat in Morfa Nefyn in October 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative homes in Morfa Nefyn with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease elapsed in 2087. Taking into account 61 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 not including professional charges.

Morfa Nefyn case:

In 2010 we were phoned by Mr L Lefèvre who, having completed a ground floor apartment in Morfa Nefyn in September 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Morfa Nefyn with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £50 billed every twelve months. The lease termination date was on 20 July 2076. Taking into account 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including professional charges.