Why you should start your Eccleshall lease extension

Why you should start your Eccleshall lease extension today:

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

Eccleshall leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Eccleshall will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Eccleshall with over one hundred years remaining 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not grant a mortgage with a short lease

Nearly all mortgage companies will be unwilling to grant a mortgage on a lease with under seventy years left to run - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this will result in your Eccleshall property becoming difficult to sell or remortgage.

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

The conveyancing solicitors that we work with undertake Eccleshall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Eccleshall Lease Extension Case Studies:

Nathan, Eccleshall, Staffordshire

Last Winter Nathan, came perilously near to the 80-year mark with the lease on his ground floor flat in Eccleshall. Having purchased his property two decades ago, the unexpired term was of no concern. As luck would have it, he recognised he needed to take action soon on Extending the lease. Nathan was able to extend his lease at the eleventh hour in January. Nathan and the freeholder eventually settled on sum of £6,000 . If he had missed the deadline, the price would have increased by at least £875.

Eccleshall case:

Last Winter we were phoned by Mr and Mrs. O Anderson , who purchased a garden flat in Eccleshall in May 1996. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar residencies in Eccleshall with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended on 20 May 2099. Taking into account 73 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.

Eccleshall case:

Mr Ben Allen took over the lease of a studio flat in Eccleshall in May 2012. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Eccleshall with a long lease were valued about £240,600. The mid-range ground rent payable was £60 invoiced yearly. The lease expired on 25 March 2088. Considering the 62 years left we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.