Why you should commence your Sale lease extension

Main reasons to start your Sale lease extension today:

Increase your lease and increase your Sale property value

It’s an underpublicised truth that a Sale residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Sale property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Sale will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.

An extended lease has roughly the same value as a freehold

Leasehold premises in Sale with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions will not grant a mortgage with a short lease

Almost all banks and building societies will be unwilling to lend on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will likely find it difficult to obtain a mortgage and this will result in your Sale property becoming difficult to sell or remortgage.

What makes us experts in Sale lease extensions?

The conveyancing solicitors 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 Example Cases:

Jordan, Sale, Greater Manchester,

After unsuccessful discussions with the freeholder of her garden flat in Sale, Jordan initiated the lease extension process as the eighty year mark was fast advancing. The lease extension was concluded in August 2011. The landlord’s costs were restricted to slightly above 500 pounds.

Sale case:

Mrs Anna Dupont was assigned a lease of a purpose-built apartment in Sale in August 2002. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar flats in Sale with 100 year plus lease were worth £275,000. The average ground rent payable was £55 billed per annum. The lease end date was on 12 November 2102. Having 76 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.

Sale case:

In 2010 we were approached by Mr Hunter Peterson who, having bought a one bedroom flat in Sale in July 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Sale with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced annually. The lease end date was in 2082. Given that there were 56 years remaining we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of costs.