Why you should start your Gainsborough lease extension

Why you should start your Gainsborough lease extension today:

Increase your lease and increase your Gainsborough property value

Gainsborough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Gainsborough tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Gainsborough you would be well advised to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Gainsborough leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay

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

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.

Lenders may not lend on a short lease

Mortgage companies do not like short residential leases. You are likely to experience problems where you want to sell your flat in Gainsborough if the remaining term of your lease is less than the criteria set by the majority of mortgage companies. Different lenders have varying criteria but on the whole they are looking for an unexpired term of at least seventy years.

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

Using our service will provide you better control over the value of your Gainsborough leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Gainsborough Lease Extension Example Cases:

Dexter, Gainsborough, Lincolnshire,

Dexter was the the leasehold proprietor of a studio apartment in Gainsborough being marketed with a lease of a little over sixty years unexpired. Dexter on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Gainsborough case:

In 2013 we were called by Mr Tyler Harris who, having was assigned a lease of a purpose-built flat in Gainsborough in January 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Gainsborough with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 billed per annum. The lease finished on 9 February 2090. Taking into account 64 years outstanding we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of fees.

Gainsborough case:

Last Christmas we were approach by Ms A Jones , who moved into a purpose-built apartment in Gainsborough in August 2012. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparative homes in Gainsborough with a long lease were in the region of £184,000. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed in 2079. Taking into account 53 years remaining we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.