Why you should commence your Filey lease extension

Main reasons to commence your Filey lease extension today:

Increase your lease and increase your Filey property value

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

An extended lease is almost the same value as a freehold

Leasehold residencies in Filey with in excess of 100 years remaining 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders will not loan monies with a short lease

Mortgage lenders have specific criteria when lending monies secured on leasehold property. Many will simply refuse lend at all once an unexpired lease term goes below a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining below 75 years as adequate security. In addition to this being important when selling, it is also relevant if you are intending to remortgage your Filey property.

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

Irrespective of whether you are a tenant or a freeholder in Filey,the lease extension lawyers 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 Filey valuers.

Filey Lease Extension Example Cases:

Isobel, Filey, North Yorkshire,

Off the back of unsuccessful discussions with the landlord of her basement apartment in Filey, Isobel commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in May 2007. The freeholder’s charges were negotiated to approximately 600 pounds.

Filey case:

Last Summer we were phoned by Dr I Johnson , who bought a purpose-built flat in Filey in November 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative properties in Filey with a long lease were in the region of £206,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease termination date was on 28 April 2082. Considering the 56 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.

Filey case:

Last June we were contacted by Mr and Mrs. D Murphy , who was assigned a lease of a recently refurbished apartment in Filey in September 1996. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparative premises in Filey with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease elapsed on 17 August 2102. Considering the 76 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.