Why you should commence your Adwick le Street lease extension

Main reasons to start your Adwick le Street lease extension today:

A Adwick le Street lease depreciates with the years remaining on the lease.

Adwick le Street residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.

Adwick le Street property with a lease extension has roughly the same value as a freehold

Leasehold properties in Adwick le Street with in excess of 100 years outstanding 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not issue a mortgage with a short lease

Lenders are tightening their criteria and a meaningful number now want flats to have a minimum of 60 if not 70 years left once the mortgage has expired. As many flats in Adwick le Street were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

Get in touch with one of our Adwick le Street lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Adwick le Street,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Adwick le Street valuers.

Adwick le Street Lease Extension Case Studies:

Owen, Adwick le Street, South Yorkshire,

Owen owned a high value apartment in Adwick le Street being sold with a lease of just over 72 years left. Owen on an informal basis approached his freeholder being a well known Manchester-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 subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Owen to exercise his statutory right. Owen obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.

Adwick le Street case:

In 2013 we were called by Mr and Mrs. E Watson who, having purchased a one bedroom flat in Adwick le Street in January 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Adwick le Street with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded in 2105. Considering the 79 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.

Adwick le Street case:

Last year we were e-mailed by Mr and Mrs. R García , who bought a one bedroom flat in Adwick le Street in November 2000. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Similar flats in Adwick le Street with an extended lease were worth £275,000. The average amount of ground rent was £65 collected yearly. The lease ended on 19 November 2094. Considering the 68 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.