Main reasons to commence your Borrowash lease extension

Top reasons for lease extension now:

Increase your lease and increase your Borrowash property value

When it comes to residential leasehold property in Borrowash, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Borrowash with a lease nearing 81 years left should seriously consider extending it sooner rather than later. When the lease term has fewer than 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.

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

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not issue a mortgage on a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now require flats to have a minimum of 60 if not 70 years left once the mortgage has expired. Given that plenty of flats in Borrowash were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

What makes us experts in Borrowash lease extensions?

Regardless of whether you are a tenant or a landlord in Borrowash,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 experience and the close ties they enjoy with Borrowash valuers.

Borrowash Lease Extension Example Cases:

Daniel, Borrowash, Derbyshire

During the course of the last few months Daniel, started to get close to the eighty-year mark with the lease on his ground floor apartment in Borrowash. In buying his home 19 years ago, the unexpired term was of no interest. by good luck, he became aware that he needed to take steps soon on Extending the lease. Daniel was able to extend his lease just under the wire in May. Daniel and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had gone to less than 80 years, the amount would have become more exhorbitant by a minimum £950.

Borrowash case:

Mrs Melissa Lefebvre took over the lease of a newly refurbished flat in Borrowash in February 2008. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Similar flats in Borrowash with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 collected per annum. The lease lapsed in 2079. Having 53 years left we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.

Borrowash case:

Mr and Mrs. B Wright purchased a ground floor apartment in Borrowash in September 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Borrowash with a long lease were worth £225,400. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2090. Taking into account 64 years outstanding we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.