Why you should commence your Guiseley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Guiseley property value

Guiseley leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Guiseley will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.

Guiseley property with a lease extension is almost the same value as a freehold

Leasehold residencies in Guiseley with in excess of 100 years unexpired on the lease are often referred to as ‘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 service charges warrant it.

Mortgage lenders will not finance a property with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Regardless of whether you are a tenant or a freeholder in Guiseley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Guiseley valuers.

Guiseley Lease Extension Case Studies:

Oscar, Guiseley, Leeds

18 months ago Oscar, came perilously near to the 80-year mark with the lease on his ground floor flat in Guiseley. In buying his flat two decades ago, the length of the lease was of little bearing. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Oscar extended the lease just ahead of time last June. Oscar and the freeholder eventually agreed on the final figure of £5,500 . If he had missed the deadline, the amount would have gone up by a minimum £1,150.

Guiseley case:

Dr P Laurent took over the lease of a ground floor flat in Guiseley in June 1995. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparative homes in Guiseley with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 collected yearly. The lease lapsed on 19 November 2103. Considering the 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.

Guiseley case:

Mr T Hernández moved into a one bedroom flat in Guiseley in June 2004. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Guiseley with 100 year plus lease were valued around £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended in 2092. Considering the 66 years unexpired we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including professional charges.