Main reasons to commence your Breaston lease extension

Top reasons for lease extension now:

A Breaston leasehold property depreciates with the years remaining on the lease.

The market value of Breaston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold residencies in Breaston with in excess of one hundred years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may not loan monies with a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically lenders were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Breaston?

The conveyancing solicitors that we work with procure Breaston 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.

Breaston Lease Extension Example Cases:

Freddie, Breaston, Derbyshire,

Freddie was the the leasehold owner of a conversion flat in Breaston on the market with a lease of a few days over fifty eight years left. Freddie informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.

Breaston case:

In 2009 we were approached by Mrs Olivia González who, having took over the lease of a purpose-built flat in Breaston in October 1997. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical properties in Breaston with an extended lease were in the region of £183,600. The average amount of ground rent was £65 billed annually. The lease elapsed in 2083. Having 57 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.

Breaston case:

In 2009 we were called by Mrs Ellen Lambert who, having was assigned a lease of a ground floor apartment in Breaston in July 2003. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Breaston with 100 year plus lease were valued around £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish on 3 November 2094. Having 68 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.