Main reasons to commence your Driffield lease extension

Main reasons to commence your Driffield lease extension today:

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

The market value of a leasehold property in Driffield is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that all matters can be concluded well before the 80 year threshold. Current legislation enables Driffield qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold premises in Driffield with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may not lend on a short lease

Almost all banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will no doubt find it difficult to obtain a mortgage and this could result in your Driffield property becoming difficult to sell or refinance.

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

Retaining our service will provide you enhanced control over the value of your Driffield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Driffield Lease Extension Case Summaries:

Ella, Driffield, East Yorkshire,

Following protracted negotiations with the freeholder of her first floor apartment in Driffield, Ella started the lease extension process just as the lease was nearing the crucial eighty-year mark. The lease extension was concluded in March 2012. The landlord’s costs were negotiated to under 700 GBP.

Driffield case:

Last Autumn we were phoned by Mr and Mrs. J Martinez , who was assigned a lease of a one bedroom apartment in Driffield in January 2007. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative homes in Driffield with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease finished in 2100. Given that there were 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.

Driffield case:

Dr E Cooper owned a first floor apartment in Driffield in July 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Driffield with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 billed quarterly. The lease concluded in 2080. Having 54 years unexpired we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of expenses.