Why you should commence your Brough lease extension

Why you should commence your Brough lease extension today:

Increase your lease and increase your Brough property value

The nearer a residential lease in Brough nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over 100 years to run then this decrease may be fractional however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Brough will meet the qualifying criteria; however a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to grant a mortgage with a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Brough lease extensions?

The conveyancers that we work with undertake Brough 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 lawyer we work with provide it.

Brough Lease Extension Case Studies:

Ibrahim, Brough, East Yorkshire,

Ibrahim was the the leasehold proprietor of a studio apartment in Brough being sold with a lease of just over sixty years left. Ibrahim on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and secured an acceptable resolution informally and readily saleable.

Brough case:

Dr Hugo Patel completed a one bedroom apartment in Brough in November 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical properties in Brough with an extended lease were in the region of £210,000. The average ground rent payable was £50 collected per annum. The lease ran out in 2106. Having 80 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.

Brough case:

Last month we were phoned by Mr and Mrs. W Bernard , who acquired a studio flat in Brough in November 2005. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Similar properties in Brough with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 collected monthly. The lease termination date was in 2095. Considering the 69 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.