Top reasons for Leyland lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold property in Leyland, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years left. Leasehold owners in Leyland with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has under eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.

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

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Banks and building societies are tightening their criteria and many now expect flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Given that a number of flats in Leyland were created in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

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

The conveyancing solicitors that we work with handle Leyland 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.

Leyland Lease Extension Case Studies:

Sophie, Leyland, Lancashire,

Subsequent to protracted negotiations with the freeholder of her studio flat in Leyland, Sophie commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction completed in March 2013. The freeholder’s costs were restricted to slightly above 500 pounds.

Leyland case:

Last Spring we were e-mailed by Dr R Bell , who bought a ground floor flat in Leyland in January 1995. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Leyland with a long lease were in the region of £200,000. The average amount of ground rent was £50 invoiced yearly. The lease ran out in 2103. Having 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.

Leyland case:

Last June we were phoned by Mrs L Morgan , who was assigned a lease of a studio flat in Leyland in October 2010. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Leyland with 100 year plus lease were valued around £265,200. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out in 2092. Having 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus legals.