Main reasons to start your Baguley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Baguley property value

The only way is down when it comes to Baguley lease terms. Baguley flats that have a remaining term less than than eighty years will de-escalate in market price even faster, and the cost of extending your lease will go up.

An extended lease is almost the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not grant a mortgage on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

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

Baguley Lease Extension Example Cases:

Rory, Baguley, Greater Manchester,

Rory owned a studio apartment in Baguley on the market with a lease of fraction over 59 years left. Rory on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to exercise his statutory right. Rory procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.

Baguley case:

Last month we were approach by Mr and Mrs. O Brooks , who purchased a purpose-built flat in Baguley in April 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Baguley with 100 year plus lease were valued about £225,800. The average amount of ground rent was £60 collected yearly. The lease ran out on 12 March 2086. Given that there were 60 years left we calculated the premium to the landlord to extend the lease to be within £25,700 and £29,600 exclusive of fees.

Baguley case:

Last year we were e-mailed by Mr and Mrs. W Clarke , who acquired a newly refurbished flat in Baguley in February 1997. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Baguley with an extended lease were worth £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out in 2106. Taking into account 80 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.