Why you should commence your Fleetwood lease extension

Why you should commence your Fleetwood lease extension today:

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

When it comes to domestic leasehold premises in Fleetwood, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Leasehold owners in Fleetwood with a lease nearing 81 years left should seriously consider extending it sooner rather than later. When a lease has less than eighty years outstanding, under the relevant legislation the freeholder can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold residencies in Fleetwood with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not grant a mortgage on a short lease

Lenders do not lend on short residential leases. You most probably experience problems if you need to sell your flat in Fleetwood if the unexpired term of your lease is under the criteria set by the majority of banks and building societies. Different lenders have different requirements but in the main they are looking for an unexpired term of at least 65 years.

What makes us experts in Fleetwood lease extensions?

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

Fleetwood Lease Extension Case Summaries:

Elizabeth, Fleetwood, Lancashire,

Off the back of unsuccessful negotiations with the freeholder of her first floor flat in Fleetwood, Elizabeth started the lease extension process just as the lease was approaching the critical eighty-year deadline. The lease extension was finalised in October 2009. The freeholder’s charges were restricted to about 600 pounds.

Fleetwood case:

Last Autumn we were e-mailed by Mr and Mrs. K Norbert , who was assigned a lease of a first floor flat in Fleetwood in January 2012. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Similar flats in Fleetwood with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish on 1 April 2098. Taking into account 72 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.

Fleetwood case:

Last Summer we were e-mailed by Dr J Watson , who took over the lease of a first floor flat in Fleetwood in October 2001. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar flats in Fleetwood with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 billed per annum. The lease finished in 2078. Considering the 52 years unexpired we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of costs.