Why you should start your Sale lease extension

Top reasons for lease extension now:

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

With a residential leasehold property in Sale, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Residents in Sale with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has fewer than eighty years outstanding, under the relevant legislation the freeholder can calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lending institutions will not finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become concerned at around 75 years. This may be problematic once you come to dispose of or remortgage your property as it will be effectively unmortgageable. You might not have an immediate desire to sell but when you do your buyer must hold off for 2 years before they can exercise the right to a a lease extension.

Why use us for your lease extension in Sale?

The conveyancing solicitors that we work with handle 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 Example Cases:

Maisie, Sale, Greater Manchester,

Subsequent to lengthy negotiations with the freeholder of her garden apartment in Sale, Maisie commenced the lease extension process as the 80 year mark was fast approaching. The lease extension was concluded in February 2006. The freeholder’s charges were negotiated to about 450 pounds.

Sale case:

Mr and Mrs. H Bailey acquired a ground floor flat in Sale in July 2011. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative flats in Sale with a long lease were worth £208,200. The mid-range amount of ground rent was £65 billed annually. The lease ended in 2087. Considering the 61 years outstanding we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including legals.

Sale case:

Dr Ben Gómez took over the lease of a one bedroom apartment in Sale in August 2000. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical residencies in Sale with a long lease were valued about £260,000. The average amount of ground rent was £50 collected annually. The lease terminated in 2098. Taking into account 72 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.