Main reasons to commence your Haydock lease extension

Why you should commence your Haydock lease extension today:

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

With a long leasehold property in Haydock, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years remaining. Leasehold owners in Haydock with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. When a lease has below eighty years left, under the relevant Act the landlord is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.

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

Leasehold properties in Haydock with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Lenders may decide not to issue a mortgage on a short lease

Almost all mortgage companies will not lend on a lease with under seventy years left to run - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Haydock property being difficult to sell or refinance.

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

Regardless of whether you are a tenant or a freeholder in Haydock,the lease extension lawyers 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 Haydock valuers.

Haydock Lease Extension Example Cases:

Charlotte, Haydock, Merseyside,

Off the back of unsuccessful correspondence with the landlord of her first floor apartment in Haydock, Charlotte commenced the lease extension process as the 80 year deadline was rapidly advancing. The lease extension was finalised in September 2012. The freeholder’s fees were restricted to below 650 pounds.

Haydock case:

Dr Maisie Petit took over the lease of a garden flat in Haydock in January 1995. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable premises in Haydock with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 collected monthly. The lease terminated on 22 April 2101. Taking into account 75 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.

Haydock case:

In 2014 we were e-mailed by Ms Georgia Patel who, having bought a purpose-built flat in Haydock in July 1998. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable premises in Haydock with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 billed per annum. The lease ran out on 4 February 2081. Given that there were 55 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.