Top reasons for Helmsley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Helmsley property value

Helmsley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Helmsley tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Helmsley you would be well advised to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Helmsley property with a lease extension has roughly the same value as a freehold

Leasehold properties in Helmsley with in excess of 100 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders will not issue a mortgage with a short lease

Lenders are tightening their criteria and many now want flats to have at least sixty if not seventy years left at the end of the mortgage. Given that plenty of flats in Helmsley were created in the 1950s, 1960s and 1970s as a result many now require lease extensions if they wish to obtain a mortgage.

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

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

Helmsley Lease Extension Example Cases:

Adam, Helmsley, North Yorkshire,

Adam owned a conversion apartment in Helmsley being sold with a lease of just over 61 years remaining. Adam on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and secured satisfactory deal informally and ending up with a market value flat.

Helmsley case:

In 2010 we were approached by Mr and Mrs. P Smith who, having acquired a ground floor flat in Helmsley in October 1997. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Similar properties in Helmsley with a long lease were in the region of £260,200. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2092. Given that there were 66 years remaining we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 plus costs.

Helmsley case:

In 2012 we were called by Mr and Mrs. J Davis who, having owned a one bedroom apartment in Helmsley in July 1995. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar premises in Helmsley with a long lease were valued around £198,800. The average amount of ground rent was £55 collected monthly. The lease concluded on 2 November 2081. Given that there were 55 years unexpired we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of costs.