Top reasons for Neston lease extension

Why you should start your Neston lease extension today:

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

As the length of the unexpired term of a Neston domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. Most flat owners in Neston will qualify for this right; nevertheless a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Neston with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders will not issue a mortgage with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria generally - 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 lenders has increased. Historically banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Neston lease extensions?

Regardless of whether you are a tenant or a freeholder in Neston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Neston valuers.

Neston Lease Extension Example Cases:

Reuben, Neston, Cheshire

Two years ago Reuben, started to get close to the 80-year mark with the lease on his first floor flat in Neston. Having purchased his home 19 years previously, the lease term was of minimal importance. Thankfully, he recognised he needed to take action soon on Extending the lease. Reuben was able to extend his lease at the eleventh hour last March. Reuben and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the figure would have increased by at least £875.

Neston case:

Mrs B Cooper acquired a garden flat in Neston in September 2001. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable flats in Neston with an extended lease were in the region of £216,000. The average amount of ground rent was £60 collected per annum. The lease terminated in 2084. Given that there were 58 years as a residual term we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.

Neston case:

Mr and Mrs. V Khan owned a garden flat in Neston in March 1996. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative properties in Neston with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expired on 11 June 2104. Taking into account 78 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.