Top reasons for Greenfield lease extension

Top reasons for lease extension now:

A Greenfield lease depreciates with the years remaining on the lease.

On the balance of probabilities if you own a flat in Greenfield you actually own a long leasehold interest over your property

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

It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Mortgage lenders have specific criteria when loaning monies secured on leasehold homes. Some will simply refrain from lending at all once the remaining lease term falls lower than a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as adequate security. As well as impacting your ability to sell, it is also relevant where you are intending to remortgage your Greenfield home.

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

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

Greenfield Lease Extension Case Studies:

Jude, Greenfield, Flintshire,

Jude owned a conversion apartment in Greenfield being marketed with a lease of a little over 72 years left. Jude on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Jude to invoke his statutory right. Jude procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.

Greenfield case:

Mr and Mrs. W Lewis purchased a ground floor apartment in Greenfield in October 2007. The question was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical premises in Greenfield with an extended lease were valued around £275,000. The mid-range ground rent payable was £55 collected per annum. The lease lapsed in 2103. Having 77 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.

Greenfield case:

In 2011 we were contacted by Mr and Mrs. G Young who, having was assigned a lease of a one bedroom flat in Greenfield in September 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Greenfield with 100 year plus lease were valued around £183,600. The average ground rent payable was £65 billed quarterly. The lease expired on 10 September 2083. Considering the 57 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.