Why you should start your Derby lease extension

Top reasons for lease extension now:

Increase your lease and increase your Derby property value

The value of Derby leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is less than eighty years

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

It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lenders will not lend with a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become jittery at around 75 years. This may be problematic as and when you need to sell or refinance your property as it will be effectively unmortgageable. You may not have an immediate desire to sell but when you do your purchaser will need to hold off for 2 years before being able to initiate the legal procedures for a lease extension.

What makes us experts in Derby lease extensions?

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

Derby Lease Extension Case Studies:

Austin, Derby, Derbyshire,

Austin was the the leasehold proprietor of a high value flat in Derby on the market with a lease of just over sixty years outstanding. Austin on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Austin to invoke his statutory right. Austin procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.

Derby case:

Last September we were e-mailed by Mr T Cox , who completed a recently refurbished apartment in Derby in June 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Derby with an extended lease were worth £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed in 2098. Taking into account 72 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.

Derby case:

Mr and Mrs. V Ali owned a one bedroom flat in Derby in August 2001. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar premises in Derby with a long lease were in the region of £261,600. The average amount of ground rent was £60 collected annually. The lease elapsed on 15 March 2078. Having 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of fees.