Top reasons for Snowdonia lease extension

Top reasons for lease extension now:

Increase your lease and increase your Snowdonia property value

The re-sale value of a leasehold property in Snowdonia is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded in advance of the eighty year cut off point. Current legislation enables Snowdonia qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Snowdonia with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get jittery at around 75 years. This will cause difficulties once you need to dispose of or remortgage your flat as it will be practically unmortgageable. You might not have an imminent plan to sell but when you do your purchaser will have to hold off for 2 years before being able to initiate the legal procedures for an extension to the lease.

Why use us for your lease extension in Snowdonia?

Regardless of whether you are a tenant or a landlord in Snowdonia,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Snowdonia valuers.

Snowdonia Lease Extension Case Summaries:

Henry, Snowdonia, Gwynedd

In 2014 Henry, started to get near to the eighty-year threshold with the lease on his first floor apartment in Snowdonia. In buying his property two decades ago, the lease term was of no interest. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. Henry extended the lease just ahead of time last August. Henry and the landlord ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £1,025.

Snowdonia case:

Last year we were e-mailed by Mr and Mrs. M Edwards , who took over the lease of a one bedroom flat in Snowdonia in November 2010. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical residencies in Snowdonia with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced monthly. The lease ended on 13 August 2099. Taking into account 73 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.

Snowdonia case:

In 2013 we were e-mailed by Mr and Mrs. T White who, having moved into a ground floor flat in Snowdonia in June 1999. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical flats in Snowdonia with an extended lease were valued about £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2079. Taking into account 53 years unexpired we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including fees.