Main reasons to commence your Horwich lease extension

Why you should start your Horwich lease extension today:

Increase your lease and increase your Horwich property value

There is no doubt about it a leasehold property in Horwich is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Horwich will qualify for this right; that being said a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may not lend with a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Horwich lease extensions?

The lawyers that we work with undertake Horwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Horwich Lease Extension Example Cases:

Connor, Horwich, Greater Manchester

Last Summer Connor, came precariously near to the 80-year threshold with the lease on his studio flat in Horwich. Having purchased his property twenty years ago, the unexpired term was of minimal importance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Connor extended the lease at the eleventh hour in September. Connor and the landlord ultimately agreed on a premium of £6,000 . If the lease had slid to less than eighty years, the figure would have become more exhorbitant by at least £1,025.

Horwich case:

Last Spring we were approach by Dr I Wright , who bought a first floor apartment in Horwich in August 2003. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical flats in Horwich with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 invoiced per annum. The lease terminated in 2105. Having 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 plus legals.

Horwich case:

Last Summer we were phoned by Mr and Mrs. D Díaz , who completed a one bedroom flat in Horwich in November 2009. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Horwich with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £65 billed annually. The lease terminated on 3 June 2094. Having 68 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.