Why you should commence your Fairfield lease extension

Main reasons to start your Fairfield lease extension today:

Increase your lease and increase your Fairfield property value

The value of Fairfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is less than 80 years

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

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

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

The trend since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a freeholder in Fairfield,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fairfield valuers.

Fairfield Lease Extension Example Cases:

Jennifer, Fairfield, Merseyside,

Trailing lengthy discussions with the freeholder of her basement flat in Fairfield, Jennifer initiated the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was concluded in September 2009. The freeholder’s fees were kept to an absolute minimum.

Fairfield case:

Mr and Mrs. A Harris completed a purpose-built flat in Fairfield in January 2008. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable residencies in Fairfield with a long lease were valued around £184,000. The mid-range amount of ground rent was £55 billed quarterly. The lease termination date was on 10 April 2079. Considering the 53 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.

Fairfield case:

Mr and Mrs. B Harris took over the lease of a basement flat in Fairfield in March 2001. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Similar premises in Fairfield with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected yearly. The lease expired on 8 May 2099. Having 73 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.