Top reasons for Leyland lease extension

Why you should start your Leyland lease extension today:

Increase your lease and increase your Leyland property value

The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Leyland have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Leyland lease extension. Putting off that expense today simply increases the premium you will eventually have to pay for a lease extension.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders may decide not to grant a mortgage on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Regardless of whether you are a tenant or a freeholder in Leyland,the lease extension experts 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 Leyland valuers.

Leyland Lease Extension Example Cases:

Harrison, Leyland, Lancashire

In recent months Harrison, came dangerously near to the eighty-year threshold with the lease on his leasehold apartment in Leyland. In buying his home 19 years previously, the length of the lease was of minimal interest. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Harrison extended the lease just under the wire last September. Harrison and the freeholder via the management company ultimately agreed on an amount of £5,000 . If he not met the deadline, the amount would have become more costly by a minimum £1,075.

Leyland case:

Last Christmas we were contacted by Mr and Mrs. K Phillips , who completed a newly refurbished flat in Leyland in October 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Leyland with a long lease were valued around £171,800. The average amount of ground rent was £55 billed per annum. The lease concluded in 2076. Having 50 years unexpired we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including fees.

Leyland case:

Last Winter we were phoned by Ms Alice Smith , who bought a one bedroom apartment in Leyland in January 1998. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable properties in Leyland with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish in 2096. Given that there were 70 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.