Top reasons for Garstang lease extension

Top reasons for lease extension now:

Increase your lease and increase your Garstang property value

Garstang leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Garstang enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Garstang you must check if your lease has between seventy and ninety years left. There are compelling reasons why a Garstang leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay

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

It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to finance a property on a short lease

Mortgage companies do not like short residential leases. You most probably experience problems if you wish to sell your flat in Garstang if the unexpired lease term is less than the criteria set by most lenders. Different mortgage companies have varying requirements but in the main theyrequire an unexpired term of at least seventy years.

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

Irrespective of whether you are a tenant or a freeholder in Garstang,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Garstang valuers.

Garstang Lease Extension Example Cases:

Jackson, Garstang, Lancashire

In 2014 Jackson, started to get close to the 80-year mark with the lease on his ground floor flat in Garstang. Having bought his home two decades ago, the unexpired term was of no interest. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Jackson arranged for a lease extension at the eleventh hour in August. Jackson and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,025.

Garstang case:

In 2013 we were phoned by Mr and Mrs. P Walker who, having owned a purpose-built flat in Garstang in September 2011. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable residencies in Garstang with a long lease were valued about £252,800. The average amount of ground rent was £65 billed monthly. The lease lapsed on 24 July 2091. Given that there were 65 years left we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including fees.

Garstang case:

In 2012 we were approached by Mr and Mrs. L Wilson who, having took over the lease of a purpose-built apartment in Garstang in October 2003. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Garstang with a long lease were valued around £191,400. The average amount of ground rent was £55 collected every twelve months. The lease expired on 2 May 2080. Considering the 54 years left we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of fees.