Main reasons to commence your Arnside lease extension

Why you should start your Arnside lease extension today:

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

As the length of the unexpired term of a Arnside domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, over 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Arnside will qualify for this right; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

Arnside property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not loan monies with a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This will be problematic as and when you need to dispose of or remortgage your flat as it will be effectively unmortgageable. You may have no immediate desire to sell but when you do your purchaser must wait two years before being able to start the legal procedures for an extension to the lease.

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

The conveyancing solicitors that we work with undertake Arnside 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.

Arnside Lease Extension Example Cases:

Laura, Arnside, Cumbria,

Following unsuccessful correspondence with the freeholder of her garden flat in Arnside, Laura initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension completed in September 2010. The freeholder’s fees were restricted to less than 600 GBP.

Arnside case:

Last Autumn we were approach by Mrs U Norbert , who acquired a ground floor flat in Arnside in February 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Arnside with an extended lease were valued about £181,600. The average ground rent payable was £55 billed annually. The lease expired on 11 September 2078. Considering the 52 years outstanding we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.

Arnside case:

Last September we were called by Ms U Lambert , who was assigned a lease of a one bedroom flat in Arnside in May 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Arnside with a long lease were in the region of £285,000. The average amount of ground rent was £45 collected yearly. The lease terminated in 2098. Considering the 72 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.