Why you should start your Carnforth lease extension

Top reasons for lease extension now:

A Carnforth lease depreciates with the years remaining on the lease.

The market value of Carnforth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than 80 years

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

Leasehold residencies in Carnforth with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may not grant a mortgage with a short lease

Mortgage companies do not like short residential leases. You most probably encounter difficulties if you need to sell your flat in Carnforth if the remaining term of your lease is less than the criteria set by the majority of banks and building societies. Different mortgage companies have varying requirements but generally theyrequire an unexpired term of at least seventy years.

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

The conveyancers that we work with handle Carnforth 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.

Carnforth Lease Extension Example Cases:

Kelsey, Carnforth, Lancashire,

Following lengthy discussions with the landlord of her garden flat in Carnforth, Kelsey started the lease extension process as the 80 year mark was swiftly nearing. The lease extension was finalised in February 2007. The freeholder’s costs were negotiated to less than 450 GBP.

Carnforth case:

Last January we were phoned by Mrs Jasmine Flores , who completed a ground floor flat in Carnforth in March 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Similar premises in Carnforth with a long lease were in the region of £240,600. The average amount of ground rent was £60 billed quarterly. The lease elapsed in 2088. Considering the 62 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of expenses.

Carnforth case:

Last year we were contacted by Dr L Cooper , who moved into a newly refurbished flat in Carnforth in October 2011. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable flats in Carnforth with an extended lease were in the region of £174,200. The average amount of ground rent was £55 collected annually. The lease terminated on 21 October 2077. Taking into account 51 years left we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.