Main reasons to start your Caerwys lease extension

Main reasons to commence your Caerwys lease extension today:

Increase your lease and increase your Caerwys property value

Caerwys leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Caerwys enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Caerwys you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Caerwys with in excess of one hundred years remaining 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 service charges justify it.

Lending institutions will not lend on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term 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 lengthy leases - many use a minimum term of 75 years as standard.

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

Lease extensions in Caerwys can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

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 Caerwys lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Caerwys Lease Extension Case Studies:

Archie, Caerwys, Flintshire,

Archie owned a studio flat in Caerwys on the market with a lease of just over sixty years left. Archie on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to invoke his statutory right. Archie obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.

Caerwys case:

Last month we were contacted by Mr and Mrs. N Hernández , who acquired a one bedroom flat in Caerwys in March 1997. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative premises in Caerwys with an extended lease were valued around £174,200. The average amount of ground rent was £55 invoiced per annum. The lease concluded in 2077. Taking into account 51 years remaining we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.

Caerwys case:

In 2014 we were contacted by Dr Oscar Allen who, having was assigned a lease of a garden flat in Caerwys in August 2009. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative properties in Caerwys with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed on 28 November 2097. Having 71 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.