Why you should commence your Everton lease extension

Top reasons for lease extension now:

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

Everton residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.

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

Leasehold properties in Everton with in excess of one hundred years left 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions will not grant a mortgage with a short lease

Lenders are really clamping down as regards to properties in Everton with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus narrowing your market.

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

Retaining our service gives you enhanced control over the value of your Everton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Everton Lease Extension Case Studies:

Mason, Everton, Merseyside

In recent months Mason, started to get near to the eighty-year threshold with the lease on his first floor flat in Everton. Having bought his flat two decades ago, the unexpired term was of no bearing. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Mason arranged for a lease extension just ahead of time in September. Mason and the freeholder eventually settled on sum of £5,500 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £875.

Everton case:

Mr Ollie David moved into a garden flat in Everton in May 2004. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Everton with an extended lease were worth £203,200. The average amount of ground rent was £65 billed every twelve months. The lease termination date was on 10 May 2087. Taking into account 61 years left we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of costs.

Everton case:

Last October we were called by Mr E Girard , who took over the lease of a basement flat in Everton in May 1997. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical homes in Everton with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed yearly. The lease ran out in 2098. Considering the 72 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.