Top reasons for Alfreton lease extension

Top reasons for lease extension now:

A Alfreton leasehold property depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in Alfreton, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Residents in Alfreton with a lease approaching 81 years remaining should seriously think of extending it sooner than later. Once a lease has fewer than eighty years left, under the current statute the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold properties in Alfreton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders will not loan monies with a short lease

Most mortgage lenders will not grant a mortgage on a lease with under 70 years left to run - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Alfreton property being difficult to dispose of or to obtain finance on.

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

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

Alfreton Lease Extension Case Summaries:

Theo, Alfreton, Derbyshire

Last October Theo, came perilously close to the 80-year threshold with the lease on his studio apartment in Alfreton. Having bought his flat 18 years ago, the length of the lease was of minimal interest. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Theo extended the lease just under the wire last March. Theo and the freeholder via the managing agents in the end agreed on the final figure of £5,500 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,150.

Alfreton case:

Last month we were contacted by Mr and Mrs. I Rogers , who was assigned a lease of a one bedroom apartment in Alfreton in January 1996. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable properties in Alfreton with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expiry date was in 2098. Having 72 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.

Alfreton case:

Mr and Mrs. K Stewart took over the lease of a first floor flat in Alfreton in October 2007. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparable properties in Alfreton with an extended lease were in the region of £261,600. The average ground rent payable was £60 invoiced every twelve months. The lease came to a finish on 15 January 2078. Having 52 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including professional charges.