Why you should commence your Tickton lease extension

Why you should start your Tickton lease extension today:

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

Tickton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Tickton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Tickton you really ought to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Tickton property with a lease extension has roughly the same value as a freehold

Leasehold premises in Tickton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to loan monies on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Tickton lease extensions?

The lawyers that we work with procure Tickton 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 conveyancer we work with provide it.

Tickton Lease Extension Case Summaries:

Reuben, Tickton, East Yorkshire,

Reuben owned a high value apartment in Tickton on the market with a lease of just over 72 years left. Reuben on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and secured satisfactory deal informally and ending up with a market value flat.

Tickton case:

In 2011 we were phoned by Dr L Watson who, having bought a studio flat in Tickton in March 1998. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Tickton with 100 year plus lease were valued around £184,000. The mid-range ground rent payable was £55 billed quarterly. The lease finished in 2079. Given that there were 53 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.

Tickton case:

Mrs Elizabeth Carter bought a studio flat in Tickton in July 1996. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Similar homes in Tickton with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease terminated on 27 February 2099. Considering the 73 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.