Top reasons for Darwen lease extension

Why you should commence your Darwen lease extension today:

Increase your lease and increase your Darwen property value

When it comes to residential leasehold premises in Darwen, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider 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 particularly once there are fewer than 80 years left. Anyone in Darwen with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has under 80 years left, under the relevant legislation the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lending institutions may decide not to issue a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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 saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Darwen Lease Extension Example Cases:

Jake, Darwen, Lancashire

Two years ago Jake, started to get close to the 80-year mark with the lease on his studio flat in Darwen. Having purchased his home 18 years ago, the lease term was of little concern. As luck would have it, he realised he needed to take action soon on Extending the lease. Jake arranged for a lease extension just ahead of time last March. Jake and the freeholder eventually agreed on the final figure of £6,000 . If he not met the deadline, the price would have gone up by a minimum £900.

Darwen case:

Mr N Ramírez completed a one bedroom apartment in Darwen in April 2000. We are asked if we could approximate the price would be to extend the lease by an additional years. Identical residencies in Darwen with a long lease were worth £191,000. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish on 6 November 2084. Considering the 58 years left we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including professional charges.

Darwen case:

Last month we were called by Dr Jack James , who acquired a purpose-built flat in Darwen in November 1998. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar flats in Darwen with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected monthly. The lease elapsed in 2095. Having 69 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.