Main reasons to commence your Culcheth lease extension

Main reasons to commence your Culcheth lease extension today:

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

When it comes to residential leasehold property in Culcheth, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long 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 gets disproportionately greater particularly when there are fewer than eighty years remaining. Leasehold owners in Culcheth with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When a lease has under 80 years remaining, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.

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

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions may not loan monies on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic as and when you wish to dispose of or remortgage your property as it will be effectively unmortgageable. You may not have an immediate desire to sell but when you do your buyer will have to hold off for a couple of years before being able to exercise the right to a a lease extension.

What makes us experts in Culcheth lease extensions?

Using our service gives you increased control over the value of your Culcheth leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Culcheth Lease Extension Case Summaries:

Harvey, Culcheth, Cheshire,

Harvey owned a studio apartment in Culcheth on the market with a lease of just over 72 years unexpired. Harvey on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.

Culcheth case:

Ms Bethany André owned a one bedroom apartment in Culcheth in March 2010. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Similar properties in Culcheth with an extended lease were valued about £208,200. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish in 2087. Having 61 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus expenses.

Culcheth case:

In 2013 we were phoned by Mr and Mrs. K Campbell who, having completed a basement apartment in Culcheth in January 2010. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative flats in Culcheth with 100 year plus lease were worth £260,000. The average ground rent payable was £50 invoiced per annum. The lease expired on 22 March 2098. Having 72 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.