Why you should commence your Adlington lease extension

Main reasons to start your Adlington lease extension today:

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

Adlington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Adlington tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Adlington you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Adlington with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions will not finance a property on a short lease

Most banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years left to run - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this will result in your Adlington property becoming difficult to dispose of or refinance.

Why use us for your lease extension in Adlington?

The conveyancers that we work with procure Adlington 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.

Adlington Lease Extension Example Cases:

Ashleigh, Adlington, Lancashire,

Subsequent to lengthy correspondence with the freeholder of her purpose-built flat in Adlington, Ashleigh initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was finalised in September 2007. The freeholder’s costs were kept to an absolute minimum.

Adlington case:

Last Summer we were phoned by Mr and Mrs. G Collins , who completed a newly refurbished flat in Adlington in September 2007. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Similar flats in Adlington with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 invoiced yearly. The lease concluded in 2077. Given that there were 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus professional charges.

Adlington case:

In 2010 we were approached by Ms Lydia Campbell who, having bought a one bedroom flat in Adlington in August 2007. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Adlington with an extended lease were in the region of £210,600. The average amount of ground rent was £45 invoiced per annum. The lease end date was in 2088. Considering the 62 years left we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.