Main reasons to commence your Kirkby In Furness lease extension

Why you should start your Kirkby In Furness lease extension today:

A Kirkby In Furness lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Kirkby In Furness residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Kirkby In Furness property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls 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 Kirkby In Furness will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may not issue a mortgage on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks would lend on a lease with twenty 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 use a minimum term of 75 years as standard.

Why use us for your lease extension in Kirkby In Furness?

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

Kirkby In Furness Lease Extension Example Cases:

Connor, Kirkby In Furness, Cumbria,

Connor owned a high value flat in Kirkby In Furness being sold with a lease of fraction over 72 years outstanding. Connor on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Kirkby In Furness case:

Last Autumn we were called by Mr Seth Robinson , who moved into a one bedroom flat in Kirkby In Furness in January 2004. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparative residencies in Kirkby In Furness with an extended lease were worth £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease termination date was on 3 July 2101. Considering the 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.

Kirkby In Furness case:

In 2009 we were approached by Mr W Bertrand who, having moved into a newly refurbished flat in Kirkby In Furness in October 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Kirkby In Furness with an extended lease were in the region of £168,800. The average ground rent payable was £60 collected annually. The lease expired in 2081. Considering the 55 years outstanding we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.