Why you should commence your Caerwys lease extension

Why you should start your Caerwys lease extension today:

Increase your lease and increase your Caerwys property value

Caerwys leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most 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 compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Caerwys property with a lease extension has roughly the same value as a freehold

Leasehold premises in Caerwys with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may not grant a mortgage with a short lease

The propensity since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Caerwys?

Irrespective of whether you are a tenant or a landlord in Caerwys,the lease extension lawyers 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 Caerwys valuers.

Caerwys Lease Extension Example Cases:

Melissa, Caerwys, Flintshire,

Trailing unsuccessful correspondence with the landlord of her ground floor apartment in Caerwys, Melissa commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction completed in June 2013. The landlord’s costs were negotiated to below 700 GBP.

Caerwys case:

In 2009 we were phoned by Dr Bethany Martínez who, having acquired a first floor flat in Caerwys in July 2011. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative flats in Caerwys with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was on 6 November 2096. Having 70 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.

Caerwys case:

Last Summer we were called by Ms W Wilson , who was assigned a lease of a newly refurbished flat in Caerwys in April 2011. The question was if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Caerwys with a long lease were worth £218,400. The average ground rent payable was £60 billed monthly. The lease came to a finish on 16 August 2085. Given that there were 59 years left we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.