Why you should commence your Garforth lease extension

Main reasons to start your Garforth lease extension today:

A Garforth lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Garforth is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised prior to the 80 year mark. Statute enables Garforth qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Garforth with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Lenders may not grant a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get nervous at around 75 years. This may be problematic when you wish to sell or refinance your flat as it will be effectively unmortgageable. Even though you might not have an immediate intention to sell but when you do your buyer will need to hold off for 2 years before being able to exercise the right to a a lease extension.

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

The conveyancing solicitors that we work with procure Garforth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Garforth Lease Extension Case Summaries:

Maisie, Garforth, Leeds,

Subsequent to protracted correspondence with the freeholder of her basement flat in Garforth, Maisie commenced the lease extension process as the eighty year deadline was fast nearing. The transaction was finalised in July 2009. The landlord’s fees were negotiated to about five hundred pounds.

Garforth case:

In 2014 we were phoned by Ms B Davis who, having owned a purpose-built flat in Garforth in July 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative properties in Garforth with an extended lease were valued around £300,000. The average amount of ground rent was £50 collected yearly. The lease expiry date was on 24 March 2102. Taking into account 76 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.

Garforth case:

In 2010 we were phoned by Mr Harvey Rose who, having owned a one bedroom apartment in Garforth in September 2001. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Garforth with 100 year plus lease were valued around £257,800. The average amount of ground rent was £65 collected monthly. The lease came to a finish in 2091. Considering the 65 years left we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.