Top reasons for Cleveleys lease extension

Top reasons for lease extension now:

Increase your lease and increase your Cleveleys property value

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Cleveleys may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Cleveleys lease extension. Shelving the costs now simply escalates the amount you will ultimately have to pay to extend the lease.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.

Mortgage lenders may not lend with a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders would lend 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 standard.

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

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

Cleveleys Lease Extension Example Cases:

Ali, Cleveleys, Lancashire

Last year Ali, came precariously near to the 80-year threshold with the lease on his one bedroom apartment in Cleveleys. Having bought his flat two decades ago, the lease term was of minimal concern. Luckily, he noticed he needed to take steps soon on Extending the lease. Ali was able to extend his lease at the eleventh hour last May. Ali and the landlord who owned the flat above subsequently settled on sum of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £875.

Cleveleys case:

In 2010 we were called by Mr and Mrs. F Sánchez who, having took over the lease of a ground floor apartment in Cleveleys in May 1998. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative properties in Cleveleys with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed annually. The lease ran out on 22 March 2092. Having 66 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.

Cleveleys case:

In 2014 we were called by Dr Luca Robinson who, having moved into a ground floor flat in Cleveleys in September 1996. We are asked if we could estimate the price could be to extend the lease by 90 years. Similar flats in Cleveleys with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected annually. The lease terminated in 2103. Taking into account 77 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.