Why you should commence your Kirby Muxloe lease extension

Main reasons to start your Kirby Muxloe lease extension today:

A Kirby Muxloe lease depreciates with the years remaining on the lease.

Unfortunately that a Kirby Muxloe residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Kirby Muxloe property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term slips under 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 extra value that a lease extension will add the property Most flat owners in Kirby Muxloe will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.

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

Leasehold residencies in Kirby Muxloe with over 100 years left on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders will not lend on a short lease

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

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

Irrespective of whether you are a tenant or a landlord in Kirby Muxloe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kirby Muxloe valuers.

Kirby Muxloe Lease Extension Example Cases:

Paige, Kirby Muxloe, Leicestershire,

Subsequent to protracted discussions with the landlord of her garden flat in Kirby Muxloe, Paige started the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was concluded in May 2009. The landlord’s fees were kept to an absolute minimum.

Kirby Muxloe case:

Dr Y Thompson acquired a basement apartment in Kirby Muxloe in April 1998. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar premises in Kirby Muxloe with an extended lease were valued around £200,000. The average ground rent payable was £50 collected monthly. The lease concluded in 2103. Having 77 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.

Kirby Muxloe case:

Mr U Laurent was assigned a lease of a newly refurbished flat in Kirby Muxloe in February 2005. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative homes in Kirby Muxloe with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 billed every twelve months. The lease came to a finish on 22 August 2092. Considering the 66 years remaining we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.