Why you should commence your Failsworth lease extension

Top reasons for lease extension now:

Increase your lease and increase your Failsworth property value

Failsworth leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease drops lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Failsworth will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Failsworth with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies will not issue a mortgage with a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with less than 70 years unexpired - although this varies between mortgage companies. A buyer will no doubt encounter difficulties to obtain a mortgage and this could result in your Failsworth property becoming difficult to sell or remortgage.

What makes us experts in Failsworth lease extensions?

Irrespective of whether you are a tenant or a landlord in Failsworth,the lease extension solicitors 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 Summaries:

Toby, Failsworth, Greater Manchester,

Toby owned a 2 bedroom flat in Failsworth being marketed with a lease of a few days over 59 years outstanding. Toby informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Toby to invoke his statutory right. Toby procured expert advice and secured satisfactory deal informally and ending up with a market value flat.

Failsworth case:

Dr I André purchased a studio flat in Failsworth in April 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Failsworth with a long lease were in the region of £208,200. The average amount of ground rent was £65 collected monthly. The lease ended in 2087. Given that there were 61 years left we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including fees.

Failsworth case:

Dr E Wood completed a one bedroom flat in Failsworth in March 1997. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Failsworth with an extended lease were worth £260,000. The average ground rent payable was £50 billed monthly. The lease termination date was in 2098. Having 72 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.