Main reasons to start your Kirk Ella lease extension

Top reasons for lease extension now:

A Kirk Ella lease depreciates with the years remaining on the lease.

Kirk Ella residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.

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

Leasehold premises in Kirk Ella with in excess of one hundred years outstanding 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lenders may not grant a mortgage with a short lease

Most high street banks are making their criteria more stringent and a meaningful number now require flats to have at least sixty if not seventy years remaining at the end of the mortgage. Considering a number of flats in Kirk Ella were created in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

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

The lawyers that we work with procure Kirk Ella 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 conveyancing solicitor we work with provide it.

Kirk Ella Lease Extension Case Studies:

Joseph, Kirk Ella, East Yorkshire

Last Christmas Joseph, came perilously close to the eighty-year mark with the lease on his first floor apartment in Kirk Ella. In buying his property twenty years ago, the unexpired term was of no bearing. Luckily, he noticed he needed to take action soon on a lease extension. Joseph was able to extend his lease just in the nick of time last January. Joseph and the freeholder via the management company eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have become more costly by at least £1,050.

Kirk Ella case:

Mr and Mrs. O Richardson completed a one bedroom flat in Kirk Ella in July 1997. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative premises in Kirk Ella with 100 year plus lease were valued around £285,000. The average amount of ground rent was £55 collected annually. The lease expired on 26 March 2105. Given that there were 79 years remaining we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.

Kirk Ella case:

In 2010 we were phoned by Dr K Laurent who, having completed a first floor flat in Kirk Ella in April 1995. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Kirk Ella with a long lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease expiry date was in 2085. Having 59 years left we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.