Why you should start your Kirkby lease extension

Main reasons to commence your Kirkby lease extension today:

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

Kirkby leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Kirkby will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Kirkby with over one hundred years remaining on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to grant a mortgage on a short lease

Mortgage lenders have set criteria when loaning monies secured on leasehold property. Many will simply refrain from lending at all once the residual lease term slips under a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below seventy years as adequate security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Kirkby home.

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

Using our service gives you better control over the value of your Kirkby leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Kirkby Lease Extension Example Cases:

Katherine, Kirkby, Merseyside,

Following unsuccessful negotiations with the freeholder of her studio flat in Kirkby, Katherine started the lease extension process as the 80 year threshold was swiftly coming. The lease extension completed in July 2009. The freeholder’s fees were negotiated to less than 650 pounds.

Kirkby case:

In 2010 we were contacted by Dr Lucas Hill who, having owned a purpose-built apartment in Kirkby in April 1998. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical properties in Kirkby with 100 year plus lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out in 2093. Having 67 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including costs.

Kirkby case:

In 2009 we were approached by Mr D Thomas who, having was assigned a lease of a ground floor flat in Kirkby in October 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Kirkby with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish in 2104. Taking into account 78 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.