Main reasons to commence your Deeside lease extension

Why you should start your Deeside lease extension today:

Increase your lease and increase your Deeside property value

Unfortunately that a Deeside residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Deeside property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Deeside will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.

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

Leasehold residencies in Deeside with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not grant a mortgage on a short lease

Lenders are tightening their criteria and many now want flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that plenty of flats in Deeside were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to get a mortgage.

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

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

Deeside Lease Extension Case Studies:

Jade, Deeside, Flintshire,

Following unsuccessful negotiations with the freeholder of her one bedroom apartment in Deeside, Jade started the lease extension process as the eighty year deadline was swiftly advancing. The lease extension was finalised in May 2009. The landlord’s charges were negotiated to less than 600 GBP.

Deeside case:

In 2011 we were e-mailed by Mrs V Collins who, having moved into a first floor flat in Deeside in February 1997. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar properties in Deeside with an extended lease were worth £275,000. The average amount of ground rent was £65 collected every twelve months. The lease expiry date was on 11 April 2094. Taking into account 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.

Deeside case:

Last July we were approach by Mr I Nelson , who purchased a first floor flat in Deeside in August 1995. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative homes in Deeside with a long lease were in the region of £208,600. The mid-range ground rent payable was £60 billed annually. The lease elapsed in 2083. Having 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.