Why you should commence your Kelsall lease extension

Why you should start your Kelsall lease extension today:

A Kelsall leasehold property depreciates with the years remaining on the lease.

With a residential leasehold property in Kelsall, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Anyone in Kelsall with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has under 80 years left, under the current Act the freeholder can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not loan monies with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Engaging our service gives you better control over the value of your Kelsall leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Kelsall Lease Extension Example Cases:

Joseph, Kelsall, Cheshire,

Joseph owned a 2 bedroom apartment in Kelsall on the market with a lease of fraction over 59 years outstanding. Joseph on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.

Kelsall case:

In 2010 we were contacted by Mr and Mrs. N Richardson who, having took over the lease of a purpose-built apartment in Kelsall in October 2011. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Kelsall with a long lease were in the region of £205,000. The average ground rent payable was £50 billed annually. The lease terminated on 14 November 2105. Considering the 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 plus costs.

Kelsall case:

In 2010 we were approached by Mr and Mrs. D James who, having acquired a one bedroom apartment in Kelsall in January 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Kelsall with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £65 billed quarterly. The lease concluded in 2094. Taking into account 68 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.