Top reasons for Leyland lease extension

Top reasons for lease extension now:

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

Leyland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Leyland residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Leyland you must check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Leyland with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not grant a mortgage on a short lease

Banks and Building Societies have set criteria when lending monies secured on leasehold property. Many will simply not lend at all once an unexpired lease term goes lower than a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than seventy years as acceptable security. In addition to this being important when selling, it is also relevant if you are wanting to remortgage your Leyland home.

What makes us experts in Leyland lease extensions?

Irrespective of whether you are a tenant or a freeholder in Leyland,the lease extension lawyers that we work with will always be willing 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:

Ellie, Leyland, Lancashire,

After unsuccessful discussions with the freeholder of her first floor apartment in Leyland, Ellie initiated the lease extension process as the 80 year threshold was quickly nearing. The transaction was finalised in August 2014. The landlord’s fees were negotiated to under 650 pounds.

Leyland case:

Dr Natasha Martin bought a studio flat in Leyland in July 1998. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative properties in Leyland with an extended lease were worth £290,000. The average amount of ground rent was £45 billed per annum. The lease finished on 9 June 2099. Given that there were 73 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.

Leyland case:

In 2014 we were contacted by Mr U Young who, having moved into a one bedroom flat in Leyland in October 2005. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable properties in Leyland with a long lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced per annum. The lease ended on 3 January 2088. Given that there were 62 years unexpired we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.