Top reasons for Todmorden lease extension

Why you should commence your Todmorden lease extension today:

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

There is no doubt about it a leasehold flat or house in Todmorden is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Todmorden will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Todmorden with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to issue a mortgage with a short lease

Most banks and building societies will not grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will likely find it difficult to obtain a mortgage and this could result in your Todmorden property becoming difficult to sell or remortgage.

What makes us experts in Todmorden lease extensions?

Irrespective of whether you are a tenant or a landlord in Todmorden,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Todmorden valuers.

Todmorden Lease Extension Example Cases:

Elijah, Todmorden, West Yorkshire,

Elijah owned a 2 bedroom flat in Todmorden on the market with a lease of a few days over sixty years unexpired. Elijah informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Todmorden case:

Ms U White bought a newly refurbished apartment in Todmorden in August 2008. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Comparable properties in Todmorden with an extended lease were worth £200,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 26 September 2103. Considering the 77 years remaining we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.

Todmorden case:

In 2012 we were phoned by Dr B Sharif who, having purchased a studio apartment in Todmorden in August 2006. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical homes in Todmorden with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2092. Given that there were 66 years outstanding we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus fees.