Top reasons for Clitheroe lease extension

Top reasons for lease extension now:

Increase your lease and increase your Clitheroe property value

The nearer a domestic lease in Clitheroe gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Clitheroe will qualify for this right; however a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders may decide not to lend on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Lease extensions in Clitheroe can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Clitheroe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Clitheroe Lease Extension Example Cases:

Arthur, Clitheroe, Lancashire,

Arthur was the the leasehold owner of a 2 bedroom flat in Clitheroe being marketed with a lease of just over 72 years remaining. Arthur informally contacted his freeholder being a well known Bristol-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 subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.

Clitheroe case:

In 2012 we were approached by Mr and Mrs. C Ramírez who, having acquired a garden flat in Clitheroe in May 2006. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical properties in Clitheroe with a long lease were valued around £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed in 2092. Taking into account 66 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.

Clitheroe case:

In 2014 we were called by Dr Isaac Alexander who, having completed a one bedroom flat in Clitheroe in June 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Clitheroe with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 collected every twelve months. The lease ended in 2103. Taking into account 77 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.