Why you should start your Trearddur Bay lease extension

Why you should commence your Trearddur Bay lease extension today:

Increase your lease and increase your Trearddur Bay property value

Unfortunately that a Trearddur Bay residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Trearddur Bay property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. Most leasehold owners in Trearddur Bay will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions may not loan monies 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 mortgage companies would grant a mortgage on a lease 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 a prerequisite.

What makes us experts in Trearddur Bay lease extensions?

Lease extensions in Trearddur Bay can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Trearddur Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Trearddur Bay Lease Extension Case Studies:

Hollie, Trearddur Bay, Isle Of Anglesey,

Off the back of lengthy discussions with the landlord of her purpose-built flat in Trearddur Bay, Hollie initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension was concluded in November 2013. The freeholder’s charges were kept to an absolute minimum.

Trearddur Bay case:

Dr U Brooks owned a recently refurbished flat in Trearddur Bay in June 1999. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Trearddur Bay with an extended lease were worth £189,000. The average amount of ground rent was £55 invoiced annually. The lease came to a finish on 14 January 2079. Having 53 years remaining we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.

Trearddur Bay case:

Last month we were e-mailed by Mr and Mrs. M Allen , who bought a newly refurbished flat in Trearddur Bay in November 2012. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar residencies in Trearddur Bay with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected annually. The lease finished in 2099. Given that there were 73 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.