Main reasons to commence your Desford lease extension

Main reasons to commence your Desford lease extension today:

A Desford lease depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Desford, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Residents in Desford with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once a lease has under eighty years outstanding, under the current Act the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold residencies in Desford with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lenders may decide not to lend on a short lease

Lending institutions have specific criteria when loaning funds charged on leasehold property. Many will simply refrain from lending at all once the residual lease term falls below a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below seventy years suitable security. As well as this being important when selling, it is also relevant where you are seeking to remortgage your Desford home.

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

Retaining our service gives you increased control over the value of your Desford leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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.

Desford Lease Extension Case Summaries:

Samantha, Desford, Leicestershire,

Off the back of unsuccessful correspondence with the landlord of her purpose-built flat in Desford, Samantha initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was finalised in February 2013. The freeholder’s costs were kept to an absolute minimum.

Desford case:

Last Winter we were e-mailed by Dr Lauren Cox , who moved into a newly refurbished apartment in Desford in April 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Desford with a long lease were valued about £270,000. The mid-range ground rent payable was £55 collected yearly. The lease lapsed in 2101. Having 75 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.

Desford case:

Mrs T Hall moved into a purpose-built flat in Desford in June 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar residencies in Desford with an extended lease were valued around £173,800. The average amount of ground rent was £60 collected per annum. The lease finished in 2081. Taking into account 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.