Top reasons for Aughton lease extension

Why you should commence your Aughton lease extension today:

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

The value of Aughton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is below than 80 years

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders will not finance a property with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

The conveyancing solicitors that we work with procure Aughton 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 conveyancing solicitor we work with provide it.

Aughton Lease Extension Example Cases:

Charlotte, Aughton, South Yorkshire,

In the wake of eight months of unsuccessful negotiations with the freeholder of her basement apartment in Aughton, Charlotte started the lease extension process as the 80 year mark was quickly coming. The lease extension was finalised in June 2014. The freeholder’s costs were kept to an absolute minimum.

Aughton case:

Last Christmas we were phoned by Mr and Mrs. L Clarke , who owned a first floor flat in Aughton in March 2012. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Aughton with an extended lease were valued around £250,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed on 3 August 2095. Considering the 69 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.

Aughton case:

Last year we were contacted by Mr and Mrs. R Hernández , who bought a garden flat in Aughton in March 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Aughton with an extended lease were valued around £290,000. The mid-range ground rent payable was £60 billed yearly. The lease lapsed in 2106. Given that there were 80 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.