Why you should commence your Leigh lease extension

Why you should commence your Leigh lease extension today:

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

The market value of Leigh leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than eighty years

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

Leasehold properties in Leigh with over one hundred years outstanding on the lease are sometimes referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to finance a property on a short lease

Lenders are really clamping down as regards to homes in Leigh with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus reducing your market.

Why use us for your lease extension in Leigh?

Irrespective of whether you are a tenant or a landlord in Leigh,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leigh valuers.

Leigh Lease Extension Example Cases:

John, Leigh, Greater Manchester,

John owned a high value apartment in Leigh on the market with a lease of a little over 59 years unexpired. John informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were John to invoke his statutory right. John procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.

Leigh case:

Ms Katie Wright took over the lease of a purpose-built flat in Leigh in February 2011. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar homes in Leigh with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected monthly. The lease ran out in 2078. Having 52 years outstanding we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus costs.

Leigh case:

In 2009 we were contacted by Ms N Laurent who, having owned a one bedroom apartment in Leigh in July 2012. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparable homes in Leigh with an extended lease were worth £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ran out on 14 October 2098. Having 72 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.