Why you should start your Urmston lease extension

Top reasons for lease extension now:

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

Urmston leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Urmston will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.

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

Leasehold residencies in Urmston with in excess of 100 years left on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may decide not to lend on a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are deemed to be unacceptable security.

What makes us experts in Urmston lease extensions?

The conveyancers that we work with handle Urmston 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 lawyer we work with provide it.

Urmston Lease Extension Case Studies:

Kayleigh, Urmston, Greater Manchester,

After unsuccessful negotiations with the freeholder of her ground floor apartment in Urmston, Kayleigh started the lease extension process as the eighty year mark was rapidly approaching. The legal work was finalised in November 2011. The landlord’s charges were kept to an absolute minimum.

Urmston case:

In 2010 we were called by Dr Aaron Wilson who, having took over the lease of a basement flat in Urmston in August 2011. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Urmston with an extended lease were worth £260,200. The mid-range ground rent payable was £65 billed per annum. The lease ended on 18 March 2092. Given that there were 66 years outstanding we calculated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of expenses.

Urmston case:

Mrs Elizabeth Thompson was assigned a lease of a one bedroom flat in Urmston in August 1997. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Urmston with a long lease were valued about £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease expired on 4 October 2081. Having 55 years left we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.