Top reasons for Bollington lease extension

Top reasons for lease extension now:

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

When it comes to domestic leasehold property in Bollington, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Residents in Bollington with a lease approaching 81 years left should seriously think of extending it sooner than later. When the lease term has below 80 years outstanding, under the relevant statute the freeholder can calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly 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 decades to come.

Mortgage lenders will not finance a property with a short lease

Lending institutions have set criteria when loaning funds charged on leasehold property. Many will simply refrain from lending at all once the residual lease term falls lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Bollington home.

What makes us experts in Bollington lease extensions?

Regardless of whether you are a tenant or a landlord in Bollington,the lease extension experts 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 Bollington valuers.

Bollington Lease Extension Case Summaries:

Katie, Bollington, Cheshire,

Trailing protracted discussions with the landlord of her studio flat in Bollington, Katie commenced the lease extension process as the eighty year mark was swiftly advancing. The legal work was concluded in March 2015. The landlord’s costs were negotiated to below 550 pounds.

Bollington case:

Last month we were phoned by Ms Lauren Thompson , who purchased a one bedroom flat in Bollington in August 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Bollington with an extended lease were valued around £208,600. The mid-range amount of ground rent was £60 billed annually. The lease concluded on 20 July 2083. Considering the 57 years outstanding we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of fees.

Bollington case:

Mr and Mrs. G Edwards completed a newly refurbished flat in Bollington in September 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Bollington with a long lease were valued about £200,000. The average ground rent payable was £50 invoiced monthly. The lease ran out in 2103. Given that there were 77 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.