Main reasons to start your Deeside lease extension

Top reasons for lease extension now:

Increase your lease and increase your Deeside property value

With a domestic leasehold property in Deeside, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Deeside with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has fewer than eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.

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

Leasehold properties in Deeside with more than 100 years left 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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not grant a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content 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 use a minimum term of 75 years as standard.

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

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 conveyancing solicitors 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:

Natalie, Deeside, Flintshire,

Off the back of lengthy correspondence with the freeholder of her first floor flat in Deeside, Natalie commenced the lease extension process as the 80 year mark was fast approaching. The legal work completed in February 2007. The landlord’s fees were kept to an absolute minimum.

Deeside case:

Last Spring we were called by Mr Jason Clarke , who moved into a purpose-built flat in Deeside in August 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Deeside with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2102. Having 76 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.

Deeside case:

Dr M Khan was assigned a lease of a studio flat in Deeside in May 2006. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Deeside with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced per annum. The lease finished on 27 February 2091. Considering the 65 years as a residual term we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.