Why you should commence your Pwllheli lease extension

Main reasons to commence your Pwllheli lease extension today:

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

With a residential leasehold property in Pwllheli, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Residents in Pwllheli with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has under 80 years left, under the relevant Act the freeholder can calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lenders will not loan monies with a short lease

Banks and building societies are really clamping down as regards to homes in Pwllheli with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus reducing your market.

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

Irrespective of whether you are a tenant or a freeholder in Pwllheli,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pwllheli valuers.

Pwllheli Lease Extension Example Cases:

Hunter, Pwllheli, Gwynedd

During the course of the last few months Hunter, came precariously near to the 80-year mark with the lease on his purpose- built flat in Pwllheli. In buying his flat two decades ago, the unexpired term was of no importance. Luckily, he recognised he needed to take steps soon on a lease extension. Hunter was able to extend his lease at the eleventh hour last January. Hunter and the freeholder eventually settled on a premium of £5,500 . If the lease had dipped below eighty years, the sum would have escalated by a minimum £975.

Pwllheli case:

In 2011 we were e-mailed by Dr G García who, having purchased a purpose-built flat in Pwllheli in February 2009. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable premises in Pwllheli with a long lease were in the region of £237,600. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 28 May 2093. Taking into account 67 years remaining we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including expenses.

Pwllheli case:

Last Spring we were approach by Ms Ashleigh Wood , who bought a newly refurbished apartment in Pwllheli in May 2000. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative residencies in Pwllheli with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 billed annually. The lease lapsed in 2104. Given that there were 78 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.