Main reasons to commence your Penrhyn Bay lease extension

Main reasons to start your Penrhyn Bay lease extension today:

Increase your lease and increase your Penrhyn Bay property value

Penrhyn Bay leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Penrhyn Bay residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Penrhyn Bay you would be well advised to investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Penrhyn Bay leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold properties in Penrhyn Bay with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not grant a mortgage with a short lease

Mortgage lenders have set criteria when loaning funds charged on leasehold property. Some will simply refuse lend at all once the residual lease term goes lower than a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant where you are intending to refinance your Penrhyn Bay property.

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

Lease extensions in Penrhyn Bay can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Penrhyn Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Penrhyn Bay Lease Extension Case Summaries:

Bethan, Penrhyn Bay, Conwy,

Off the back of protracted discussions with the landlord of her first floor apartment in Penrhyn Bay, Bethan initiated the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction was finalised in August 2012. The landlord’s charges were restricted to below 700 GBP.

Penrhyn Bay case:

Last Autumn we were called by Mr and Mrs. G Scott , who acquired a one bedroom flat in Penrhyn Bay in January 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Penrhyn Bay with 100 year plus lease were worth £206,200. The average ground rent payable was £55 collected monthly. The lease end date was on 7 August 2082. Taking into account 56 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.

Penrhyn Bay case:

Last month we were approach by Dr Logan White , who bought a one bedroom flat in Penrhyn Bay in August 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative residencies in Penrhyn Bay with an extended lease were valued about £300,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish on 25 April 2102. Given that there were 76 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.