Main reasons to commence your Barlestone lease extension

Top reasons for lease extension now:

Increase your lease and increase your Barlestone property value

The value of Barlestone leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years

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

Leasehold properties in Barlestone with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

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

Nearly all banks and building societies insist on a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is reasonable to assume that someone wishing to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of your property will likely suffer. Since 2008 most banks and building societies have increased the required minimum lease length that they are prepared to lend on

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

The lawyers that we work with procure Barlestone 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.

Barlestone Lease Extension Example Cases:

Archie, Barlestone, Leicestershire

Two years ago Archie, started to get close to the 80-year mark with the lease on his ground floor flat in Barlestone. In buying his home 19 years ago, the length of the lease was of no significance. Luckily, he recognised he would soon be paying an escalated premium for a lease extension. Archie extended the lease just ahead of time in September. Archie and the freeholder in the end agreed on a premium of £5,500 . If he had missed the deadline, the sum would have gone up by at least £850.

Barlestone case:

Last Spring we were phoned by Mr E Gunderson , who bought a newly refurbished apartment in Barlestone in June 2006. The question was if we could approximate the premium would be to prolong the lease by 90 years. Similar residencies in Barlestone with an extended lease were worth £265,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out on 27 May 2099. Having 73 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.

Barlestone case:

Mr and Mrs. V Phillips purchased a first floor flat in Barlestone in November 2001. The question was if we could estimate the price would likely be to extend the lease by an additional years. Comparative properties in Barlestone with a long lease were valued about £264,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed on 4 September 2079. Considering the 53 years remaining we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of legals.