Why you should start your Ilkeston lease extension

Why you should commence your Ilkeston lease extension today:

Increase your lease and increase your Ilkeston property value

Ilkeston residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not finance a property with a short lease

Most banks have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be insufficient for lending purposes.

What makes us experts in Ilkeston lease extensions?

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

Ilkeston Lease Extension Case Studies:

Nathaniel, Ilkeston, Derbyshire

Half a year ago Nathaniel, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Ilkeston. In buying his flat 19 years previously, the unexpired term was of no significance. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Nathaniel extended the lease at the eleventh hour last June. Nathaniel and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the sum would have increased by a minimum £875.

Ilkeston case:

Last month we were approach by Mrs I Morgan , who purchased a recently refurbished flat in Ilkeston in September 2009. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparable premises in Ilkeston with an extended lease were worth £295,000. The average ground rent payable was £45 collected monthly. The lease termination date was on 8 February 2100. Considering the 74 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.

Ilkeston case:

Last year we were phoned by Mr U Richardson , who completed a basement flat in Ilkeston in February 2009. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Ilkeston with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 collected per annum. The lease ended on 27 June 2089. Given that there were 63 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including fees.