Why you should commence your Leigh lease extension

Top reasons for lease extension now:

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

As the the remaining lease term of a Leigh residential lease decreases so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Leigh will qualify for this right; however a lawyer can advise whether you qualify to extend your lease. In limited 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

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lending institutions will not lend on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Leigh?

The conveyancing solicitors that we work with handle Leigh 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.

Leigh Lease Extension Example Cases:

Tommy, Leigh, Greater Manchester

Last Spring Tommy, came seriously near to the eighty-year threshold with the lease on his ground floor apartment in Leigh. In buying his flat twenty years ago, the length of the lease was of no relevance. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Tommy was able to extend his lease at the eleventh hour last July. Tommy and the landlord eventually agreed on sum of £5,000 . If the lease had dropped to less than 80 years, the amount would have escalated by a minimum £850.

Leigh case:

In 2012 we were e-mailed by Dr Jayden Torres who, having bought a one bedroom flat in Leigh in May 2005. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Comparative residencies in Leigh with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 collected per annum. The lease came to a finish in 2086. Having 60 years remaining we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of costs.

Leigh case:

Last Autumn we were called by Mr and Mrs. H Davies , who moved into a studio flat in Leigh in October 2005. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparative flats in Leigh with an extended lease were worth £210,000. The average amount of ground rent was £50 billed every twelve months. The lease came to a finish on 1 April 2106. Given that there were 80 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.