Why you should commence your Alfreton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Alfreton property value

Unfortunately that a Alfreton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Alfreton property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to 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 The majority of flat owners in Alfreton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.

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

Leasehold premises in Alfreton with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may not lend with a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past 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 lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Alfreton lease extensions?

Engaging our service gives you better control over the value of your Alfreton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Alfreton Lease Extension Example Cases:

Rachael, Alfreton, Derbyshire,

After lengthy negotiations with the freeholder of her garden flat in Alfreton, Rachael initiated the lease extension process as the eighty year deadline was rapidly nearing. The transaction completed in January 2012. The freeholder’s costs were restricted to below 500 GBP.

Alfreton case:

Ms G Nelson moved into a garden flat in Alfreton in August 2003. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical homes in Alfreton with 100 year plus lease were valued around £261,600. The mid-range ground rent payable was £60 billed yearly. The lease finished in 2078. Considering the 52 years left we calculated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including professional charges.

Alfreton case:

In 2010 we were called by Mr and Mrs. V Bell who, having purchased a one bedroom flat in Alfreton in March 1998. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative residencies in Alfreton with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed per annum. The lease elapsed on 14 May 2089. Having 63 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including fees.