Main reasons to commence your Deeside lease extension

Top reasons for lease extension now:

A Deeside lease depreciates with the years remaining on the lease.

The market value of Deeside leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than eighty years

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

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may not finance a property with 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 types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - routinely fifty 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.

Why use us for your lease extension in Deeside?

Engaging our service will provide you better control over the value of your Deeside leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Deeside Lease Extension Example Cases:

Liam, Deeside, Flintshire

Two years ago Liam, came seriously close to the eighty-year threshold with the lease on his ground floor flat in Deeside. Having purchased his home twenty years previously, the length of the lease was of little concern. As luck would have it, he noticed he needed to take action soon on a lease extension. Liam was able to extend his lease just ahead of time in April. Liam and the landlord subsequently settled on a premium of £5,000 . If the lease had descended to less than eighty years, the figure would have become more costly by a minimum £1,100.

Deeside case:

In 2009 we were contacted by Dr R Lambert who, having purchased a one bedroom apartment in Deeside in June 2008. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparative homes in Deeside with an extended lease were in the region of £250,400. The average amount of ground rent was £65 invoiced per annum. The lease expired in 2090. Considering the 64 years left we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including costs.

Deeside case:

Ms Natasha Clark took over the lease of a first floor flat in Deeside in November 2008. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical premises in Deeside with an extended lease were valued about £184,000. The average ground rent payable was £55 billed quarterly. The lease finished in 2079. Taking into account 53 years unexpired we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.