Top reasons for Leigh lease extension

Top reasons for lease extension now:

Increase your lease and increase your Leigh property value

The re-sale value of a leasehold property in Leigh depends on how long the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised in advance of the eighty year cut off point. Statute enables Leigh qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Leigh with more than 100 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may decide not to finance a property on a short lease

Lenders are making their criteria more stringent and a meaningful number now want flats to have at least 60 if not 70 years remaining once the mortgage has expired. Given that plenty of flats in Leigh were built in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in Leigh?

The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.

Leigh Lease Extension Case Studies:

Rachael, Leigh, Greater Manchester,

Off the back of lengthy negotiations with the freeholder of her studio flat in Leigh, Rachael commenced the lease extension process as the 80 year deadline was fast coming. The lease extension completed in May 2012. The freeholder’s fees were kept to an absolute minimum.

Leigh case:

Last Autumn we were contacted by Mr and Mrs. M Petit , who took over the lease of a first floor flat in Leigh in September 1996. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Leigh with a long lease were valued about £285,000. The average amount of ground rent was £45 invoiced monthly. The lease lapsed on 16 April 2098. Having 72 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.

Leigh case:

Last month we were approach by Mr and Mrs. V Davis , who bought a first floor flat in Leigh in October 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Leigh with 100 year plus lease were worth £233,200. The average ground rent payable was £60 collected per annum. The lease expired in 2087. Taking into account 61 years remaining we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of fees.