Unfortunately that a Euxton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Euxton property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. Most flat owners in Euxton will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Leeds Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Retaining our service will provide you enhanced control over the value of your Euxton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy correspondence with the landlord of her studio flat in Euxton, Lauren initiated the lease extension process as the 80 year mark was quickly approaching. The legal work completed in June 2015. The freeholder’s charges were negotiated to a tad over 550 pounds.
Dr Connor Reed acquired a first floor apartment in Euxton in May 2008. The question was if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Euxton with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed on 1 August 2095. Considering the 69 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
In 2012 we were called by Mr L Sánchez who, having acquired a studio apartment in Euxton in June 1995. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Euxton with an extended lease were valued about £216,000. The average ground rent payable was £60 billed per annum. The lease expired on 22 March 2084. Considering the 58 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.