Why you should start your Eccles lease extension

Main reasons to start your Eccles lease extension today:

Increase your lease and increase your Eccles property value

The re-sale value of a leasehold property in Eccles is impacted by how long the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be finalised well before the eighty year threshold. Leasehold Reform legislation enables Eccles qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

Eccles property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This may cause difficulties once you wish to market or remortgage your property as it will be effectively unmortgageable. You may have no immediate plan to sell but when you do your purchaser will have to wait a couple of years before they can initiate the legal procedures for a lease extension.

Why use us for your lease extension in Eccles?

Irrespective of whether you are a tenant or a landlord in Eccles,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eccles valuers.

Eccles Lease Extension Example Cases:

Stanley, Eccles, Greater Manchester

14 months ago Stanley, started to get near to the eighty-year mark with the lease on his leasehold apartment in Eccles. Having bought his flat two decades ago, the lease term was of no significance. As luck would have it, he realised he would imminently be paying an inflated amount for Extending the lease. Stanley arranged for a lease extension just in the nick of time last January. Stanley and the freeholder subsequently settled on a premium of £6,000 . If the lease had gone to less than 80 years, the premium would have escalated by at least £1,075.

Eccles case:

In 2009 we were phoned by Dr Grace Lefebvre who, having took over the lease of a ground floor apartment in Eccles in March 1997. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparable premises in Eccles with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease end date was in 2106. Given that there were 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.

Eccles case:

Last July we were called by Mr and Mrs. P Ricardo , who was assigned a lease of a garden flat in Eccles in April 2007. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable flats in Eccles with a long lease were worth £275,000. The mid-range amount of ground rent was £45 collected monthly. The lease expired in 2095. Given that there were 69 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.