Why you should start your Alvaston lease extension

Why you should start your Alvaston lease extension today:

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

Alvaston leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Alvaston will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Alvaston with more than one hundred years left 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to lend on a short lease

Banks and building societies are really restricting their approach as regards to homes in Alvaston with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing the amount of potential purchasers.

Why use us for your lease extension in Alvaston?

Regardless of whether you are a tenant or a freeholder in Alvaston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alvaston valuers.

Alvaston Lease Extension Case Studies:

Edward, Alvaston, Derbyshire

Last Autumn Edward, started to get close to the 80-year threshold with the lease on his one bedroom flat in Alvaston. In buying his home 18 years previously, the unexpired term was of little concern. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Edward arranged for a lease extension just in the nick of time in March. Edward and the landlord subsequently agreed on a premium of £5,000 . If the lease had dropped lower than eighty years, the price would have increased by a minimum £1,125.

Alvaston case:

Ms O Turner moved into a ground floor apartment in Alvaston in April 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparative homes in Alvaston with a long lease were in the region of £267,600. The average ground rent payable was £65 billed annually. The lease expired in 2093. Having 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of fees.

Alvaston case:

In 2013 we were phoned by Mr and Mrs. Y López who, having moved into a garden apartment in Alvaston in November 2000. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable premises in Alvaston with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 billed monthly. The lease elapsed on 27 September 2082. Taking into account 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.