Top reasons for Penrhyndeudraeth lease extension

Why you should start your Penrhyndeudraeth lease extension today:

Increase your lease and increase your Penrhyndeudraeth property value

The nearer a residential lease in Penrhyndeudraeth gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Penrhyndeudraeth will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Penrhyndeudraeth property with a lease extension has roughly the same value as a freehold

Leasehold premises in Penrhyndeudraeth with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to issue a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

The lawyers that we work with handle Penrhyndeudraeth 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.

Penrhyndeudraeth Lease Extension Case Studies:

Owen, Penrhyndeudraeth, Gwynedd,

Owen was the the leasehold owner of a conversion flat in Penrhyndeudraeth on the market with a lease of just over 72 years remaining. Owen informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to grant 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 twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.

Penrhyndeudraeth case:

In 2011 we were called by Mr and Mrs. D Martinez who, having purchased a ground floor flat in Penrhyndeudraeth in April 2008. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable properties in Penrhyndeudraeth with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected quarterly. The lease end date was in 2100. Given that there were 74 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.

Penrhyndeudraeth case:

Last Autumn we were approach by Mrs Y Richardson , who acquired a one bedroom apartment in Penrhyndeudraeth in March 1996. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar residencies in Penrhyndeudraeth with a long lease were valued around £166,400. The average amount of ground rent was £60 billed monthly. The lease ended on 27 August 2080. Having 54 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including costs.