Why you should commence your Fallowfield lease extension

Main reasons to commence your Fallowfield lease extension today:

Increase your lease and increase your Fallowfield property value

Fallowfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Fallowfield residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Fallowfield you should check if your lease has between seventy and ninety years left. There are good reasons why a Fallowfield flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay

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

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lending institutions will not loan monies on a short lease

The propensity 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 unexpired lease term required by banks has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Fallowfield lease extensions?

The conveyancers that we work with undertake Fallowfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Fallowfield Lease Extension Case Summaries:

Thomas, Fallowfield, Greater Manchester

Last Autumn Thomas, came critically near to the 80-year mark with the lease on his studio flat in Fallowfield. Having bought his property twenty years previously, the lease term was of little bearing. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Thomas extended the lease at the eleventh hour last July. Thomas and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If the lease had dipped lower than 80 years, the price would have gone up by a minimum £1,125.

Fallowfield case:

In 2012 we were contacted by Dr L Bonnet who, having took over the lease of a basement apartment in Fallowfield in March 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Fallowfield with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 collected quarterly. The lease ran out in 2093. Taking into account 67 years left we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.

Fallowfield case:

Mr and Mrs. H Rivera completed a ground floor apartment in Fallowfield in January 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Fallowfield with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 billed monthly. The lease ran out in 2104. Having 78 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.