Why you should commence your Guisborough lease extension

Why you should start your Guisborough lease extension today:

Increase your lease and increase your Guisborough property value

With a long leasehold property in Guisborough, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years left. Anyone in Guisborough with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. Once a lease has under eighty years left, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold residencies in Guisborough with more than one hundred years outstanding 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not finance a property with a short lease

Many mortgage companies will not lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Guisborough property being difficult to dispose of or remortgage.

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

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

Guisborough Lease Extension Example Cases:

Finley, Guisborough, North Yorkshire

Two years ago Finley, started to get close to the 80-year mark with the lease on his first floor flat in Guisborough. Having purchased his property twenty years ago, the length of the lease was of minimal bearing. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Finley arranged for a lease extension just under the wire in May. Finley and the freeholder ultimately agreed on sum of £5,500 . If the lease had slipped to less than 80 years, the price would have increased by at least £1,025.

Guisborough case:

Last Summer we were e-mailed by Mr and Mrs. M Sharif , who acquired a one bedroom apartment in Guisborough in April 2004. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparable premises in Guisborough with an extended lease were in the region of £193,400. The average ground rent payable was £65 billed yearly. The lease ended in 2085. Having 59 years unexpired we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including expenses.

Guisborough case:

In 2012 we were contacted by Mrs A Garcia who, having completed a recently refurbished apartment in Guisborough in October 2009. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparable residencies in Guisborough with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced monthly. The lease finished in 2096. Given that there were 70 years outstanding we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 plus legals.