Why you should commence your Beeston lease extension

Main reasons to commence your Beeston lease extension today:

Increase your lease and increase your Beeston property value

It’s a harsh certainty that a Beeston residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Beeston property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Beeston will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.

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

Leasehold residencies in Beeston with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to issue a mortgage on a short lease

Almost all mortgage lenders insist on a lengthy amount of time left on any leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should be conscious that it is probable that someone intending to buy your property in the future might well do, so if they can't obtain a mortgage, then the financial worth of the property will likely be adversely impacted. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are willing to lend on

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

Irrespective of whether you are a tenant or a freeholder in Beeston,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 Beeston valuers.

Beeston Lease Extension Example Cases:

Daniel, Beeston, Leeds

Last Summer Daniel, came precariously near to the eighty-year mark with the lease on his two bedroom apartment in Beeston. Having purchased his property two decades ago, the unexpired term was of no concern. Luckily, he noticed he needed to take steps soon on Extending the lease. Daniel extended the lease just in the nick of time in September. Daniel and the landlord ultimately settled on a premium of £6,000 . If the lease had dipped below eighty years, the amount would have increased by a minimum £1,150.

Beeston case:

In 2014 we were approached by Mr and Mrs. R Edwards who, having was assigned a lease of a newly refurbished apartment in Beeston in February 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Beeston with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 invoiced yearly. The lease ended on 3 January 2083. Considering the 57 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.

Beeston case:

In 2014 we were contacted by Dr Kyle Brooks who, having acquired a one bedroom flat in Beeston in February 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative flats in Beeston with 100 year plus lease were in the region of £245,000. The average ground rent payable was £50 billed per annum. The lease concluded on 22 January 2094. Considering the 68 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.