Top reasons for Leicester lease extension

Main reasons to start your Leicester lease extension today:

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

As the the remaining lease term of a Leicester domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be fractional however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Leicester will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Leicester with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may decide not to lend on a short lease

Banks and building societies do not lend on short residential leases. You most probably experience difficulties where you need to sell your flat in Leicester if the remaining lease term is under the criteria set by the majority of banks and building societies. Different lenders have varying requirements but in the main they are looking for a minimum remaining lease term of seventy years.

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

Retaining our service gives you increased control over the value of your Leicester leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Leicester Lease Extension Example Cases:

Sarah, Leicester, Leicestershire,

Trailing protracted discussions with the freeholder of her two bedroom apartment in Leicester, Sarah initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The legal work was finalised in January 2011. The landlord’s fees were negotiated to below 700 pounds.

Leicester case:

Last Winter we were called by Mr and Mrs. P David , who moved into a basement flat in Leicester in August 2007. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Similar properties in Leicester with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired on 26 May 2106. Given that there were 80 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.

Leicester case:

In 2012 we were e-mailed by Mr J Cooper who, having completed a newly refurbished apartment in Leicester in March 2010. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable flats in Leicester with a long lease were valued around £275,000. The average amount of ground rent was £45 billed per annum. The lease expiry date was on 11 October 2095. Having 69 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.