Why you should commence your Barrow In Furness lease extension

Main reasons to start your Barrow In Furness lease extension today:

A Barrow In Furness lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Barrow In Furness depends on how long the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised ahead of the eighty year cut off point. Statute enables Barrow In Furness qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Mortgage lenders may not finance a property with a short lease

Lending institutions have specific criteria when loaning monies charged on leasehold homes. Many will simply not lend at all once an unexpired lease term slips beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are seeking to remortgage your Barrow In Furness property.

Get in touch with one of our Barrow In Furness lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you enhanced control over the value of your Barrow In Furness leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Barrow In Furness Lease Extension Example Cases:

Henry, Barrow In Furness, Cumbria

In recent months Henry, came precariously near to the eighty-year threshold with the lease on his garden apartment in Barrow In Furness. In buying his property two decades ago, the unexpired term was of no interest. Fortunately, he realised he needed to take action soon on Extending the lease. Henry was able to extend his lease at the eleventh hour last May. Henry and the landlord eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have become more costly by a minimum £1,150.

Barrow In Furness case:

Mr and Mrs. L Harris purchased a ground floor apartment in Barrow In Furness in January 2009. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar premises in Barrow In Furness with a long lease were worth £220,400. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded in 2090. Considering the 64 years left we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.

Barrow In Furness case:

Last month we were approach by Mr and Mrs. I Thomas , who acquired a ground floor apartment in Barrow In Furness in June 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative properties in Barrow In Furness with a long lease were valued about £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease ran out on 8 March 2101. Considering the 75 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.