Main reasons to start your Croston lease extension

Main reasons to start your Croston lease extension today:

Increase your lease and increase your Croston property value

Unfortunately that a Croston residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Croston property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. The majority of flat owners in Croston will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

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

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to grant a mortgage with a short lease

Banks and building societies are really clamping down as regards to properties in Croston with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus limiting your market.

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

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

Croston Lease Extension Example Cases:

Morgan, Croston, Lancashire,

Subsequent to unsuccessful negotiations with the landlord of her garden apartment in Croston, Morgan initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction completed in June 2011. The landlord’s charges were negotiated to below five hundred pounds.

Croston case:

Last May we were approach by Mrs Katie Garcia , who owned a studio flat in Croston in April 1999. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Croston with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 invoiced monthly. The lease end date was in 2077. Having 51 years remaining we approximated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of expenses.

Croston case:

Mr and Mrs. W Phillips acquired a first floor apartment in Croston in May 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Croston with an extended lease were valued about £210,600. The average amount of ground rent was £45 collected yearly. The lease concluded on 2 June 2088. Having 62 years remaining we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus fees.