Main reasons to start your Penmaenmawr lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold premises in Penmaenmawr, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Anyone in Penmaenmawr with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has less than eighty years outstanding, under the current legislation the landlord can calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is due.

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

Leasehold properties in Penmaenmawr with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions will not lend with a short lease

Almost all banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will likely find it difficult to obtain a mortgage and this could result in your Penmaenmawr property being difficult to dispose of or to obtain finance on.

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

The conveyancing solicitors that we work with handle Penmaenmawr 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.

Penmaenmawr Lease Extension Case Studies:

Isabel, Penmaenmawr, Conwy,

Following lengthy negotiations with the landlord of her two bedroom flat in Penmaenmawr, Isabel started the lease extension process as the 80 year deadline was quickly approaching. The legal work was finalised in October 2005. The freeholder’s costs were kept to an absolute minimum.

Penmaenmawr case:

In 2014 we were called by Mr and Mrs. K André who, having purchased a studio apartment in Penmaenmawr in June 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Penmaenmawr with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 billed monthly. The lease concluded on 16 November 2088. Having 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus professional charges.

Penmaenmawr case:

Last year we were approach by Mr Kian Evans , who moved into a basement apartment in Penmaenmawr in February 2002. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative premises in Penmaenmawr with 100 year plus lease were valued around £265,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2099. Taking into account 73 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.