Top reasons for Cudworth lease extension

Top reasons for lease extension now:

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

With a residential leasehold premises in Cudworth, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years remaining. Anyone in Cudworth with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once the lease term has fewer than eighty years left, under the relevant statute the freeholder is entitled to calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.

Cudworth property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lenders may not issue a mortgage with a short lease

Lenders are tightening their criteria and many now require flats to have at least sixty if not seventy years left once the mortgage has expired. As many flats in Cudworth were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

Why use us for your lease extension in Cudworth?

Irrespective of whether you are a tenant or a landlord in Cudworth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cudworth valuers.

Cudworth Lease Extension Case Studies:

Henry, Cudworth, South Yorkshire

Last October Henry, started to get near to the 80-year threshold with the lease on his two bedroom flat in Cudworth. Having bought his property two decades ago, the length of the lease was of no importance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Henry was able to extend his lease just under the wire last June. Henry and the freeholder ultimately settled on a premium of £5,500 . If the lease had dipped to less than 80 years, the amount would have increased by at least £1,025.

Cudworth case:

In 2014 we were contacted by Dr George Green who, having purchased a one bedroom flat in Cudworth in February 2011. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar properties in Cudworth with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 collected monthly. The lease finished in 2088. Considering the 62 years unexpired we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including legals.

Cudworth case:

Mr Jasper Allen bought a first floor flat in Cudworth in April 2005. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical properties in Cudworth with an extended lease were valued about £265,000. The average amount of ground rent was £50 collected annually. The lease elapsed in 2099. Given that there were 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.