Why you should commence your Droylsden lease extension

Main reasons to commence your Droylsden lease extension today:

Increase your lease and increase your Droylsden property value

Droylsden leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher amount will be payable. Leasehold owners in Droylsden will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Droylsden with in excess of one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Lenders may not finance a property on a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with less than seventy years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Droylsden property being difficult to sell or remortgage.

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

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

Droylsden Lease Extension Case Studies:

Theo, Droylsden, Greater Manchester,

Theo was the the leasehold proprietor of a studio flat in Droylsden on the market with a lease of a little over 61 years unexpired. Theo on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.

Droylsden case:

In 2013 we were e-mailed by Mr and Mrs. L Sharif who, having completed a recently refurbished flat in Droylsden in February 1996. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Droylsden with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected yearly. The lease terminated in 2102. Having 76 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.

Droylsden case:

Last Christmas we were called by Dr L Clark , who moved into a basement flat in Droylsden in January 1999. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar residencies in Droylsden with a long lease were worth £257,800. The mid-range ground rent payable was £65 collected quarterly. The lease concluded in 2091. Given that there were 65 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including legals.