Main reasons to start your Geddington lease extension

Why you should commence your Geddington lease extension today:

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

Geddington 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. The majority of owners of residential leasehold property in Geddington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Geddington you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

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

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to loan monies with a short lease

Almost all banks and building societies insist on a lengthy amount of time remaining on any leasehold residence before they will contemplate it as adequate security. Even if you don't need a mortgage, you should be mindful that it is probable that someone wanting to buy your property in the future might well do, so where they can't get a mortgage, then the financial worth of the property will likely be adversely impacted. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in Geddington?

The conveyancing solicitors that we work with handle Geddington 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.

Geddington Lease Extension Example Cases:

Theo, Geddington, Northamptonshire,

Theo was the the leasehold owner of a 2 bedroom apartment in Geddington being marketed with a lease of a few days over 61 years unexpired. Theo on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Geddington case:

Mr and Mrs. H Alexander purchased a one bedroom apartment in Geddington in January 2009. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical premises in Geddington with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected annually. The lease lapsed on 7 February 2080. Given that there were 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.

Geddington case:

Mr and Mrs. E Gunderson bought a garden apartment in Geddington in September 2011. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable premises in Geddington with 100 year plus lease were valued about £227,800. The average ground rent payable was £45 invoiced quarterly. The lease terminated in 2091. Having 65 years remaining we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.