Why you should commence your Droylsden lease extension

Main reasons to start your Droylsden lease extension today:

Increase your lease and increase your Droylsden property value

With a residential leasehold premises in Droylsden, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Residents in Droylsden with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years remaining, under the current legislation the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.

Droylsden property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lenders may decide not to finance a property with a short lease

The trend since over the last decade 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 charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

Engaging our service will provide you enhanced control over the value of your Droylsden leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Droylsden Lease Extension Case Studies:

Shannon, Droylsden, Greater Manchester,

Trailing unsuccessful discussions with the landlord of her ground floor apartment in Droylsden, Shannon commenced the lease extension process as the 80 year mark was rapidly nearing. The legal work was concluded in May 2015. The freeholder’s fees were kept to an absolute minimum.

Droylsden case:

Dr Ellen Vincent bought a purpose-built flat in Droylsden in February 1996. The question was if we could estimate the price could be for a 90 year extension to my lease. Identical residencies in Droylsden with 100 year plus lease were valued around £233,200. The mid-range ground rent payable was £60 billed per annum. The lease end date was in 2087. Considering the 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of expenses.

Droylsden case:

Last Winter we were e-mailed by Ms Melissa Ricardo , who bought a garden apartment in Droylsden in June 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Droylsden with a long lease were in the region of £171,800. The average amount of ground rent was £55 billed monthly. The lease ended in 2076. Given that there were 50 years outstanding we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including fees.