Main reasons to commence your Headingley lease extension

Top reasons for lease extension now:

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

It’s an underpublicised truth that a Headingley residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Headingley property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Headingley will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Headingley with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

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

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to get nervous at around 75 years. This will be problematic once you come to dispose of or remortgage your flat as it will be practically unmortgageable. You might not have an imminent plan to sell but when you do your buyer will have to hold off for 2 years before being able to exercise the right to a an extension to the lease.

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

Engaging our service will provide you increased control over the value of your Headingley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Headingley Lease Extension Case Studies:

Jacob, Headingley, Leeds

Two years ago Jacob, came perilously close to the 80-year mark with the lease on his two bedroom apartment in Headingley. Having purchased his home twenty years ago, the lease term was of no concern. Thankfully, he noticed he needed to take steps soon on a lease extension. Jacob was able to extend his lease just under the wire in June. Jacob and the landlord in the end agreed on a premium of £5,000 . If he not met the deadline, the amount would have increased by a minimum £1,000.

Headingley case:

Last Winter we were approach by Mr and Mrs. A Mitchell , who took over the lease of a newly refurbished flat in Headingley in July 2008. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Headingley with an extended lease were valued about £295,000. The mid-range ground rent payable was £45 invoiced monthly. The lease terminated on 27 September 2100. Given that there were 74 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.

Headingley case:

Mrs M Moreau was assigned a lease of a one bedroom apartment in Headingley in October 1997. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparable premises in Headingley with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed on 8 June 2089. Having 63 years outstanding we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including costs.