Top reasons for Colne lease extension

Why you should commence your Colne lease extension today:

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

The re-sale value of a leasehold property in Colne depends on how many years the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed ahead of the 80 year cut off point. Statute entitles Colne qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Colne with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 maintenance charges warrant it.

Lenders may not finance a property on a short lease

Lenders will not grant a mortgage on short residential leases. You most probably experience problems if you want to sell your flat in Colne if the unexpired term of your lease is less than the criteria set by most mortgage companies. Different mortgage companies have varying criteria but generally they are looking for an unexpired term of at least seventy years.

Why use us for your lease extension in Colne?

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

Colne Lease Extension Example Cases:

Lydia, Colne, Lancashire,

After unsuccessful negotiations with the freeholder of her leasehold apartment in Colne, Lydia initiated the lease extension process as the eighty year mark was quickly advancing. The legal work was finalised in October 2015. The landlord’s fees were restricted to approximately 450 GBP.

Colne case:

Dr Jennifer Vincent took over the lease of a newly refurbished apartment in Colne in April 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Colne with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease end date was in 2101. Taking into account 75 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.

Colne case:

Last month we were contacted by Mr and Mrs. M Hill , who moved into a one bedroom apartment in Colne in September 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Colne with an extended lease were valued about £250,400. The mid-range ground rent payable was £65 billed per annum. The lease finished in 2090. Having 64 years outstanding we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including legals.