Top reasons for Ellesmere Port lease extension

Top reasons for lease extension now:

Increase your lease and increase your Ellesmere Port property value

For anyone whose Ellesmere Port flat is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.

Ellesmere Port property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions will not finance a property on a short lease

Lending institutions have specific criteria when loaning funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips beneath a specified unexpired lease term. Many Lending institutions will not regard property with a remaining below seventy years as adequate security. In addition to this being important when selling, it is also relevant where you are intending to remortgage your Ellesmere Port property.

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

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

Ellesmere Port Lease Extension Case Studies:

Megan, Ellesmere Port, Cheshire,

In the wake of 6 months of lengthy discussions with the landlord of her two bedroom apartment in Ellesmere Port, Megan started the lease extension process as the eighty year threshold was fast approaching. The legal work was finalised in July 2013. The freeholder’s fees were kept to an absolute minimum.

Ellesmere Port case:

Dr Ellen Davis acquired a garden flat in Ellesmere Port in September 1996. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Ellesmere Port with an extended lease were valued about £198,800. The mid-range ground rent payable was £55 billed every twelve months. The lease concluded on 19 September 2081. Having 55 years as a residual term we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.

Ellesmere Port case:

In 2009 we were called by Mr O Campbell who, having bought a one bedroom flat in Ellesmere Port in February 2009. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Ellesmere Port with an extended lease were in the region of £295,000. The average amount of ground rent was £50 invoiced yearly. The lease ran out in 2101. Considering the 75 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.