Why you should commence your Droylsden lease extension

Top reasons for lease extension now:

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

Droylsden leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be payable. Flat owners in Droylsden will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Droylsden with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not issue a mortgage on a short lease

Lending institutions have set criteria when lending funds secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term falls beneath a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below seventy years as adequate security. As well as this being important when selling, it is also relevant if you are seeking to refinance your Droylsden property.

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

Engaging our service will provide you increased control over the value of your Droylsden 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.

Droylsden Lease Extension Case Studies:

Hollie, Droylsden, Greater Manchester,

Trailing lengthy negotiations with the landlord of her garden flat in Droylsden, Hollie initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work completed in April 2014. The landlord’s costs were negotiated to under 500 GBP.

Droylsden case:

In 2012 we were phoned by Dr A White who, having purchased a purpose-built flat in Droylsden in May 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Droylsden with an extended lease were worth £208,600. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed in 2083. Having 57 years outstanding we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including fees.

Droylsden case:

In 2011 we were contacted by Ms Sophie Petit who, having completed a recently refurbished flat in Droylsden in August 1997. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Droylsden with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease termination date was in 2103. Considering the 77 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.