Top reasons for Barnoldswick lease extension

Why you should commence your Barnoldswick lease extension today:

Increase your lease and increase your Barnoldswick property value

Barnoldswick leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Barnoldswick residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Barnoldswick you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

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

Leasehold residencies in Barnoldswick with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may not finance a property on a short lease

The propensity since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Barnoldswick?

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

Barnoldswick Lease Extension Case Studies:

Archie, Barnoldswick, Lancashire

Last Christmas Archie, came dangerously near to the eighty-year threshold with the lease on his one bedroom flat in Barnoldswick. Having bought his flat 19 years ago, the unexpired term was of no importance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Archie extended the lease just ahead of time last July. Archie and the landlord ultimately agreed on an amount of £6,000 . If the lease had dropped to less than 80 years, the premium would have become more exhorbitant by at least £950.

Barnoldswick case:

In 2010 we were approached by Ms H Díaz who, having was assigned a lease of a one bedroom apartment in Barnoldswick in May 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical premises in Barnoldswick with a long lease were worth £198,800. The mid-range ground rent payable was £55 billed every twelve months. The lease ended on 5 January 2081. Considering the 55 years remaining we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including fees.

Barnoldswick case:

Mr and Mrs. J Harris took over the lease of a recently refurbished apartment in Barnoldswick in April 2011. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable properties in Barnoldswick with a long lease were in the region of £295,000. The average amount of ground rent was £45 collected quarterly. The lease ended on 14 March 2101. Considering the 75 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.