Why you should commence your Grasmere lease extension

Top reasons for lease extension now:

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

For those whose Grasmere property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.

Grasmere 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 unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Lenders may not lend on a short lease

Almost all mortgage lenders insist on a lengthy amount of time left on a leasehold property before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is probable that someone wishing to buy your property in the future might well do, so where they can't obtain a mortgage, then the financial worth of your property could be adversely impacted. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

The lawyers that we work with procure Grasmere 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 conveyancer we work with provide it.

Grasmere Lease Extension Case Studies:

Mia, Grasmere, Cumbria,

Subsequent to protracted discussions with the landlord of her garden flat in Grasmere, Mia commenced the lease extension process just as the lease was nearing the all-important 80-year threshold. The legal work was concluded in January 2005. The landlord’s charges were negotiated to about 450 pounds.

Grasmere case:

Last Summer we were approach by Ms A Davies , who owned a first floor flat in Grasmere in June 1997. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Grasmere with an extended lease were valued about £205,000. The average ground rent payable was £50 invoiced per annum. The lease expired in 2105. Considering the 79 years left we approximated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of expenses.

Grasmere case:

In 2013 we were approached by Mr I Sánchez who, having moved into a basement flat in Grasmere in April 2005. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical premises in Grasmere with a long lease were in the region of £270,000. The mid-range ground rent payable was £65 collected monthly. The lease finished on 27 October 2094. Given that there were 68 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.