Top reasons for Leeds lease extension

Why you should start your Leeds lease extension today:

A Leeds leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Leeds have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Leeds lease extension. Shelving that expense today simply escalates the price you will ultimately have to pay for a lease extension.

Leeds property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may decide not to lend on a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Retaining our service will provide you enhanced control over the value of your Leeds leasehold, as your property will be more valuable and saleable 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.

Leeds Lease Extension Example Cases:

Max, Leeds, West Yorkshire,

Max owned a high value apartment in Leeds being marketed with a lease of fraction over fifty eight years unexpired. Max on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Leeds case:

In 2012 we were phoned by Dr B Martin who, having was assigned a lease of a basement apartment in Leeds in April 2011. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparative premises in Leeds with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected annually. The lease lapsed in 2097. Taking into account 71 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.

Leeds case:

In 2012 we were approached by Dr Ibrahim Allen who, having was assigned a lease of a basement flat in Leeds in March 2000. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparable homes in Leeds with an extended lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease finished in 2077. Considering the 51 years left we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 not including legals.