Top reasons for Failsworth lease extension

Why you should start your Failsworth lease extension today:

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

When it comes to residential leasehold premises in Failsworth, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Anyone in Failsworth with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has below 80 years left, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.

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

Leasehold residencies in Failsworth with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may not grant a mortgage with a short lease

Most mortgage lenders will not grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties to obtain a mortgage and this could result in your Failsworth property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Failsworth lease extensions?

Regardless of whether you are a tenant or a freeholder in Failsworth,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 experience and the close ties they enjoy with Failsworth valuers.

Failsworth Lease Extension Case Studies:

Austin, Failsworth, Greater Manchester,

Austin was the the leasehold proprietor of a conversion flat in Failsworth being sold with a lease of just over fifty eight years unexpired. Austin informally spoke with his landlord a well known London-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 on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Austin to exercise his statutory right. Austin obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Failsworth case:

In 2012 we were e-mailed by Mr and Mrs. V Dupont who, having owned a one bedroom flat in Failsworth in June 1998. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Identical properties in Failsworth with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease concluded in 2099. Given that there were 73 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.

Failsworth case:

Mr L Brown owned a basement flat in Failsworth in April 1995. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Failsworth with a long lease were worth £264,000. The average ground rent payable was £60 invoiced quarterly. The lease expired on 9 February 2079. Given that there were 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of legals.