Why you should start your Rhuddlan lease extension

Top reasons for lease extension now:

Increase your lease and increase your Rhuddlan property value

With a domestic leasehold property in Rhuddlan, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Rhuddlan with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When the lease term has below 80 years remaining, under the current Act the landlord can calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.

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

Leasehold residencies in Rhuddlan with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to finance a property on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Rhuddlan lease extensions?

The conveyancing solicitors that we work with handle Rhuddlan 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.

Rhuddlan Lease Extension Example Cases:

Katherine, Rhuddlan, Denbighshire,

Subsequent to unsuccessful negotiations with the landlord of her ground floor flat in Rhuddlan, Katherine commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was finalised in October 2013. The freeholder’s costs were kept to an absolute minimum.

Rhuddlan case:

In 2009 we were called by Ms I Gray who, having was assigned a lease of a one bedroom apartment in Rhuddlan in February 2000. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical flats in Rhuddlan with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 billed per annum. The lease lapsed in 2098. Taking into account 72 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.

Rhuddlan case:

Mr and Mrs. F Hernández acquired a purpose-built flat in Rhuddlan in January 2004. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical flats in Rhuddlan with a long lease were worth £233,200. The mid-range amount of ground rent was £60 collected per annum. The lease end date was on 2 November 2087. Having 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including costs.