Main reasons to commence your Pwllheli lease extension

Why you should commence your Pwllheli lease extension today:

Increase your lease and increase your Pwllheli property value

When it comes to residential leasehold premises in Pwllheli, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Residents in Pwllheli with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has below 80 years left, under the current Act the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.

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

Leasehold residencies in Pwllheli with in excess of one hundred years left 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not loan monies with a short lease

Banks and building societies are making their criteria more stringent and many now want flats to have a minimum of sixty if not seventy years remaining at the end of the mortgage. Given that many flats in Pwllheli were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

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

Using our service gives you enhanced control over the value of your Pwllheli leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Pwllheli Lease Extension Case Studies:

Ethan, Pwllheli, Gwynedd

In recent months Ethan, started to get close to the 80-year threshold with the lease on his garden flat in Pwllheli. In buying his home two decades ago, the lease term was of minimal bearing. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Ethan arranged for a lease extension just under the wire in June. Ethan and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If the lease had slid lower than eighty years, the price would have gone up by a minimum £900.

Pwllheli case:

In 2009 we were phoned by Ms Chelsea Walker who, having was assigned a lease of a garden apartment in Pwllheli in January 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical properties in Pwllheli with 100 year plus lease were valued about £168,800. The average amount of ground rent was £60 billed every twelve months. The lease finished on 28 January 2081. Considering the 55 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.

Pwllheli case:

Dr Samuel Ali was assigned a lease of a purpose-built flat in Pwllheli in September 2002. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Pwllheli with an extended lease were worth £235,200. The average amount of ground rent was £45 billed annually. The lease terminated in 2092. Taking into account 66 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.