Why you should start your Nefyn lease extension

Top reasons for lease extension now:

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

On the balance of probabilities where you own a flat in Nefyn you actually own a long leasehold interest over your property

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

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent 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

The trend since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Nefyn?

The conveyancers that we work with handle 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.

Nefyn Lease Extension Example Cases:

Edward, Nefyn, Gwynedd

Last year Edward, started to get near to the eighty-year mark with the lease on his leasehold flat in Nefyn. Having bought his property two decades ago, the lease term was of no bearing. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Edward extended the lease at the eleventh hour last June. Edward and the freeholder subsequently settled on an amount of £5,000 . If the lease had gone below eighty years, the premium would have increased by a minimum £1,150.

Nefyn case:

Mr and Mrs. R Flores owned a one bedroom apartment in Nefyn in November 1998. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparative properties in Nefyn with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed in 2089. Given that there were 63 years left we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of expenses.

Nefyn case:

Last Summer we were phoned by Mr and Mrs. O Wilson , who bought a studio apartment in Nefyn in June 1997. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar residencies in Nefyn with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £55 billed annually. The lease expired on 18 October 2100. Having 74 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.