Why you should commence your Allenton lease extension

Main reasons to commence your Allenton lease extension today:

Increase your lease and increase your Allenton property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Allenton. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Allenton have the right to extend the lease for a further ninety years under statute. You should give careful attention before putting off your Allenton lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease

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

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.

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

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get nervous at around 75 years. This may be problematic once you need to sell or refinance your property as it will be practically unmortgageable. Even though you might not have an imminent plan to sell but when you do your purchaser will have to wait 2 years before being able to initiate the legal procedures for an extension to the lease.

Get in touch with one of our Allenton lease extension solicitors or enfranchisement solicitors

Using our service will provide you better control over the value of your Allenton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Allenton Lease Extension Case Studies:

Reuben, Allenton, Derbyshire

Last year Reuben, started to get close to the 80-year threshold with the lease on his basement apartment in Allenton. In buying his home 18 years previously, the unexpired term was of little relevance. Fortunately, he recognised he needed to take action soon on Extending the lease. Reuben was able to extend his lease just under the wire in August. Reuben and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had slid below 80 years, the price would have become more exhorbitant by a minimum £1,025.

Allenton case:

Mr and Mrs. K Lefèvre was assigned a lease of a garden flat in Allenton in February 2008. The question was if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Allenton with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected quarterly. The lease elapsed on 22 May 2102. Having 76 years left we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.

Allenton case:

In 2011 we were contacted by Mr Riley Girard who, having completed a ground floor apartment in Allenton in July 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Allenton with a long lease were valued about £257,800. The average amount of ground rent was £65 billed yearly. The lease concluded on 19 April 2091. Taking into account 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of fees.