Main reasons to start your Eccleston lease extension

Why you should start your Eccleston lease extension today:

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

Eccleston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Eccleston residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Eccleston you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Eccleston with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not lend on a short lease

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

The lawyers that we work with procure Eccleston 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 conveyancer we work with provide it.

Eccleston Lease Extension Example Cases:

Tyler, Eccleston, Merseyside

During the course of the last few months Tyler, started to get close to the eighty-year mark with the lease on his basement flat in Eccleston. Having purchased his flat 19 years previously, the length of the lease was of little importance. Thankfully, he realised he needed to take action soon on a lease extension. Tyler arranged for a lease extension just under the wire in March. Tyler and the freeholder ultimately settled on a premium of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £975.

Eccleston case:

In 2013 we were called by Mr and Mrs. O Jones who, having was assigned a lease of a purpose-built flat in Eccleston in January 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in Eccleston with a long lease were valued around £280,000. The mid-range ground rent payable was £55 collected monthly. The lease ran out in 2103. Considering the 77 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.

Eccleston case:

Last Autumn we were contacted by Mr Owen Lambert , who moved into a first floor apartment in Eccleston in July 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Eccleston with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease end date was on 1 January 2083. Given that there were 57 years left we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.