Main reasons to commence your Leicester lease extension

Main reasons to start your Leicester lease extension today:

Increase your lease and increase your Leicester property value

Leicester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Leicester tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Leicester you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

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

Leasehold properties in Leicester with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to grant a mortgage with a short lease

What makes us experts in Leicester lease extensions?

The conveyancers that we work with undertake Leicester 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 conveyancer we work with provide it.

Leicester Lease Extension Case Studies:

Jonathan, Leicester, Leicestershire

Last Christmas Jonathan, started to get close to the 80-year mark with the lease on his garden apartment in Leicester. In buying his flat two decades ago, the unexpired term was of minimal relevance. by good luck, he recognised he needed to take steps soon on a lease extension. Jonathan extended the lease just under the wire last June. Jonathan and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the price would have escalated by at least £1,025.

Leicester case:

In 2011 we were called by Ms Catherine Dupont who, having owned a ground floor apartment in Leicester in April 2001. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Similar homes in Leicester with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ran out on 10 September 2098. Considering the 72 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.

Leicester case:

Last Summer we were contacted by Ms Rebecca Richardson , who was assigned a lease of a one bedroom flat in Leicester in April 1999. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable properties in Leicester with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease elapsed in 2087. Taking into account 61 years remaining we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including costs.