Main reasons to start your Breaston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Breaston property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Breaston. Inevitably, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Breaston have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful attention before putting off your Breaston lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease

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

Leasehold properties in Breaston with over 100 years remaining on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not loan monies on a short lease

Most mortgage lenders have tightened lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under 75 years as they are regarded as deficient for lending purposes.

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

Engaging our service will provide you increased control over the value of your Breaston leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Breaston Lease Extension Example Cases:

Leo, Breaston, Derbyshire

Last Christmas Leo, started to get close to the 80-year mark with the lease on his two bedroom flat in Breaston. In buying his home two decades ago, the length of the lease was of no significance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Leo extended the lease just ahead of time in August. Leo and the freeholder via the management company in the end settled on sum of £6,000 . If the lease had dropped lower than 80 years, the price would have gone up by a minimum £1,000.

Breaston case:

Dr P Edwards owned a studio apartment in Breaston in April 1995. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar premises in Breaston with 100 year plus lease were worth £250,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 3 April 2095. Considering the 69 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.

Breaston case:

Last Winter we were contacted by Ms Kayleigh Garcia , who owned a basement apartment in Breaston in April 2001. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar flats in Breaston with a long lease were in the region of £290,000. The average amount of ground rent was £60 invoiced yearly. The lease expired in 2106. Having 80 years unexpired we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.