Top reasons for Barnoldswick lease extension

Main reasons to start your Barnoldswick lease extension today:

Increase your lease and increase your Barnoldswick property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Barnoldswick. Clearly, the period of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Barnoldswick have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Please give due consideration before delaying your Barnoldswick lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease

An extended lease has roughly the same value as a freehold

Leasehold premises in Barnoldswick with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

Lending institutions will not grant a mortgage on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically fifty 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 standard.

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

The conveyancers that we work with handle Barnoldswick 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.

Barnoldswick Lease Extension Case Summaries:

Leon, Barnoldswick, Lancashire

14 months ago Leon, started to get near to the 80-year threshold with the lease on his two bedroom flat in Barnoldswick. Having bought his property two decades ago, the length of the lease was of minimal concern. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. Leon extended the lease at the eleventh hour in April. Leon and the landlord ultimately agreed on the final figure of £5,500 . If the lease had slipped to less than 80 years, the amount would have increased by a minimum £975.

Barnoldswick case:

In 2009 we were called by Dr E Bertrand who, having bought a studio flat in Barnoldswick in May 2000. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Similar properties in Barnoldswick with an extended lease were in the region of £174,200. The average amount of ground rent was £55 invoiced annually. The lease termination date was on 7 June 2077. Having 51 years left we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.

Barnoldswick case:

Last Spring we were phoned by Mr and Mrs. K Hill , who took over the lease of a ground floor flat in Barnoldswick in July 2005. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Barnoldswick with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed in 2097. Having 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.