Why you should commence your Broughton lease extension

Top reasons for lease extension now:

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

There is no doubt about it a leasehold flat or house in Broughton is a wasting asset as a result of the shortening lease. If the residual term has, more than 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Broughton will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

Leasehold properties in Broughton with over 100 years outstanding on the lease are sometimes 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 reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may not grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get nervous at around 75 years. This will be problematic when you come to dispose of or refinance your property as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your buyer will need to hold off for 2 years before being able to commence the legal procedures for an extension to the lease.

What makes us experts in Broughton lease extensions?

The conveyancers that we work with undertake Broughton 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.

Broughton Lease Extension Case Summaries:

Alexander, Broughton, Manchester,

Alexander owned a conversion apartment in Broughton on the market with a lease of a few days over sixty years unexpired. Alexander on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Alexander to invoke his statutory right. Alexander procured expert advice and secured an acceptable deal without going to tribunal and sell the property.

Broughton case:

In 2010 we were e-mailed by Mrs Danielle Vincent who, having acquired a garden flat in Broughton in February 2003. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical properties in Broughton with an extended lease were valued around £275,000. The average ground rent payable was £65 billed yearly. The lease ran out in 2094. Given that there were 68 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.

Broughton case:

In 2014 we were called by Mr and Mrs. G Green who, having took over the lease of a one bedroom apartment in Broughton in May 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Broughton with a long lease were valued about £208,600. The average ground rent payable was £60 invoiced per annum. The lease concluded in 2083. Having 57 years outstanding we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus fees.