Why you should commence your Sale lease extension

Why you should commence your Sale lease extension today:

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

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

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

It is generally considered that a residential leasehold with in excess of 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 premises will be worth the same as a freehold for many years ahead.

Mortgage lenders will not loan monies on a short lease

Lending institutions have set criteria when lending funds secured on leasehold property. Some will simply not lend at all once an unexpired lease term slips below a certain unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than seventy years suitable security. As well as this being important when selling, it is also relevant where you are wanting to refinance your Sale property.

What makes us experts in Sale lease extensions?

The lawyers that we work with undertake Sale 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.

Sale Lease Extension Case Studies:

Naomi, Sale, Greater Manchester,

Trailing lengthy discussions with the freeholder of her studio apartment in Sale, Naomi initiated the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was finalised in July 2013. The landlord’s fees were kept to an absolute minimum.

Sale case:

In 2011 we were phoned by Mrs T Gunderson who, having moved into a one bedroom flat in Sale in February 2000. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Similar premises in Sale with a long lease were in the region of £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 12 May 2106. Given that there were 80 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.

Sale case:

In 2014 we were approached by Mr Jackson Fournier who, having bought a one bedroom flat in Sale in April 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar residencies in Sale with an extended lease were worth £200,800. The mid-range ground rent payable was £65 billed per annum. The lease finished on 14 May 2086. Given that there were 60 years left we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including fees.