Why you should commence your Clitheroe lease extension

Top reasons for lease extension now:

Increase your lease and increase your Clitheroe property value

Clitheroe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Clitheroe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Clitheroe you should investigate if your lease has between 70 and 90 years left. There are good reasons why a Clitheroe flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not lend on a short lease

Lenders are making their criteria more stringent and many now expect flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Given that a number of flats in Clitheroe were created in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Clitheroe lease extensions?

Using our service will provide you increased control over the value of your Clitheroe leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Clitheroe Lease Extension Case Studies:

Milo, Clitheroe, Lancashire,

Milo owned a studio flat in Clitheroe being marketed with a lease of just over 59 years left. Milo informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to exercise his statutory right. Milo procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.

Clitheroe case:

Last month we were e-mailed by Mr U Hernández , who acquired a purpose-built flat in Clitheroe in May 2002. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Identical flats in Clitheroe with a long lease were valued about £254,200. The average ground rent payable was £60 collected every twelve months. The lease elapsed on 27 November 2077. Considering the 51 years left we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including expenses.

Clitheroe case:

In 2009 we were called by Mr and Mrs. S Hernández who, having bought a purpose-built apartment in Clitheroe in November 2012. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable residencies in Clitheroe with a long lease were worth £210,600. The average amount of ground rent was £45 collected annually. The lease concluded in 2088. Given that there were 62 years outstanding we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.