Top reasons for Ruthin lease extension

Why you should commence your Ruthin lease extension today:

Increase your lease and increase your Ruthin property value

Ruthin 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 the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ruthin residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ruthin you should investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

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

It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies will not loan monies with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined 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 Ruthin?

Using our service gives you increased control over the value of your Ruthin leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.

Ruthin Lease Extension Case Studies:

Matthew, Ruthin, Denbighshire,

Matthew was the the leasehold owner of a 2 bedroom flat in Ruthin on the market with a lease of a few days over sixty years left. Matthew on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.

Ruthin case:

In 2012 we were approached by Ms H Jackson who, having was assigned a lease of a ground floor flat in Ruthin in March 2012. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical premises in Ruthin with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease concluded in 2084. Considering the 58 years outstanding we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.

Ruthin case:

Ms M Hernández bought a first floor flat in Ruthin in August 2001. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar premises in Ruthin with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease terminated in 2104. Taking into account 78 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.