Main reasons to commence your Lanchester lease extension

Why you should start your Lanchester lease extension today:

Increase your lease and increase your Lanchester property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Lanchester. Clearly, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Lanchester have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful attention before putting off your Lanchester lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease

An extended lease has roughly the same value as a freehold

Leasehold premises in Lanchester with more than 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to lend with a short lease

Banks and building societies are really restricting their approach as regards to properties in Lanchester with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing the number of prospective purchasers.

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

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

Lanchester Lease Extension Case Summaries:

Ellie, Lanchester, County Durham,

In the wake of 6 months of protracted discussions with the freeholder of her garden apartment in Lanchester, Ellie started the lease extension process as the eighty year mark was fast nearing. The legal work completed in May 2010. The freeholder’s fees were restricted to below 500 GBP.

Lanchester case:

Mr Max Smith bought a purpose-built apartment in Lanchester in September 2009. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Lanchester with a long lease were valued around £208,200. The mid-range amount of ground rent was £65 collected yearly. The lease came to a finish in 2087. Having 61 years outstanding we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.

Lanchester case:

In 2014 we were e-mailed by Dr Shannon Nelson who, having owned a first floor flat in Lanchester in July 1998. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Similar residencies in Lanchester with an extended lease were in the region of £260,000. The average amount of ground rent was £50 invoiced yearly. The lease lapsed in 2098. Given that there were 72 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.