Top reasons for Ellesmere lease extension

Top reasons for lease extension now:

A Ellesmere lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Ellesmere is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded ahead of the eighty year threshold. Statute enables Ellesmere qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

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

Mortgage lenders may not finance a property with a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should be mindful that it is probable that someone wishing to buy your property in the future might well do, so if they can't secure a mortgage, then the value of the property will likely suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to lend on

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

The conveyancing solicitors that we work with procure Ellesmere 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.

Ellesmere Lease Extension Example Cases:

Kyle, Ellesmere, Shropshire,

Kyle was the the leasehold proprietor of a conversion flat in Ellesmere on the market with a lease of a little over 61 years left. Kyle on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert advice and secured satisfactory deal informally and sell the property.

Ellesmere case:

In 2013 we were called by Mr and Mrs. A Lewis who, having bought a studio apartment in Ellesmere in June 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical flats in Ellesmere with a long lease were valued around £191,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease ended in 2084. Taking into account 58 years left we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.

Ellesmere case:

Last Christmas we were phoned by Mr and Mrs. M Evans , who moved into a newly refurbished apartment in Ellesmere in June 2003. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative residencies in Ellesmere with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed per annum. The lease finished on 11 October 2095. Taking into account 69 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.