Why you should start your Halewood lease extension

Why you should start your Halewood lease extension today:

A Halewood lease depreciates with the years remaining on the lease.

For anyone whose Halewood property is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.

An extended lease has roughly the same value as a freehold

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

Lending institutions may decide not to grant a mortgage on a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold property before they will consider lending on it. Regardless of whether you require a mortgage, you should bear in mind that it is probable that someone wanting to buy your property in the future might well do, so if they can't obtain a mortgage, then the financial worth of your property could be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

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

Halewood Lease Extension Case Summaries:

Kian, Halewood, Merseyside,

Kian owned a studio apartment in Halewood being marketed with a lease of a little over 61 years outstanding. Kian on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.

Halewood case:

Last Summer we were phoned by Mr and Mrs. T Carter , who moved into a recently refurbished apartment in Halewood in November 2010. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Halewood with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish in 2105. Given that there were 79 years remaining we approximated the premium to the landlord to extend the lease to be within £7,600 and £8,800 plus costs.

Halewood case:

Last Summer we were phoned by Dr V Simon , who purchased a recently refurbished flat in Halewood in August 1997. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Halewood with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 billed per annum. The lease came to a finish in 2094. Having 68 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.