Top reasons for Darwen lease extension

Top reasons for lease extension now:

Increase your lease and increase your Darwen property value

When it comes to residential leasehold premises in Darwen, you are actually buying an entitlement to live in a property for a prescribed time frame. 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 think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Darwen with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has fewer than eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies will not finance a property with a short lease

Banks and Building Societies have set criteria when loaning monies secured on leasehold homes. Some will simply refrain from lending at all once the residual lease term falls under a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below 75 years suitable security. As well as this being important when selling, it is also relevant if you are seeking to refinance your Darwen home.

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

Retaining our service will provide you enhanced control over the value of your Darwen leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Darwen Lease Extension Example Cases:

Amelia, Darwen, Lancashire,

In the wake of 9 months of unsuccessful negotiations with the landlord of her ground floor apartment in Darwen, Amelia commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was concluded in June 2013. The landlord’s costs were negotiated to a tad over 650 GBP.

Darwen case:

Last Autumn we were approach by Mr and Mrs. D Flores , who took over the lease of a purpose-built flat in Darwen in March 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Darwen with a long lease were in the region of £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease finished in 2103. Taking into account 77 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.

Darwen case:

In 2013 we were called by Mrs Katie Fournier who, having completed a studio flat in Darwen in March 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable residencies in Darwen with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 invoiced monthly. The lease lapsed on 11 March 2083. Having 57 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.