Why you should commence your Greenfield lease extension

Why you should start your Greenfield lease extension today:

Increase your lease and increase your Greenfield property value

The value of Greenfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is below than eighty years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Greenfield with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not lend with a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below seventy years as they are regarded as unacceptable for lending purposes.

What makes us experts in Greenfield lease extensions?

Regardless of whether you are a tenant or a freeholder in Greenfield,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Greenfield valuers.

Greenfield Lease Extension Example Cases:

Luca, Greenfield, Flintshire,

Luca was the the leasehold proprietor of a conversion flat in Greenfield on the market with a lease of fraction over 59 years left. Luca informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert advice and secured satisfactory deal without going to tribunal and sell the property.

Greenfield case:

In 2013 we were approached by Ms V Flores who, having owned a one bedroom flat in Greenfield in September 1998. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in Greenfield with 100 year plus lease were worth £203,200. The average ground rent payable was £65 invoiced annually. The lease expired in 2087. Having 61 years remaining we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of expenses.

Greenfield case:

Last Christmas we were approach by Ms Sophia Anderson , who acquired a ground floor flat in Greenfield in March 1998. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparative premises in Greenfield with an extended lease were worth £260,000. The average amount of ground rent was £50 invoiced per annum. The lease expiry date was on 22 March 2098. Considering the 72 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.