Why you should start your Littleborough lease extension

Main reasons to commence your Littleborough lease extension today:

A Littleborough leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Littleborough. Clearly, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Littleborough have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give careful consideration before putting off your Littleborough lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.

Lenders may not finance a property with a short lease

Mortgage companies are really clamping down as regards to properties in Littleborough with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus limiting the number of prospective buyers.

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

The lawyers that we work with handle Littleborough 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.

Littleborough Lease Extension Case Studies:

Courtney, Littleborough, Greater Manchester,

Subsequent to protracted correspondence with the landlord of her studio flat in Littleborough, Courtney initiated the lease extension process as the eighty year deadline was swiftly advancing. The lease extension completed in February 2009. The freeholder’s fees were kept to an absolute minimum.

Littleborough case:

In 2009 we were approached by Mr Milo Martinez who, having acquired a garden apartment in Littleborough in September 2010. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar properties in Littleborough with 100 year plus lease were valued about £208,200. The average ground rent payable was £65 invoiced yearly. The lease terminated on 14 September 2087. Considering the 61 years unexpired we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.

Littleborough case:

In 2010 we were e-mailed by Mr and Mrs. K Edwards who, having bought a studio flat in Littleborough in July 2004. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative premises in Littleborough with an extended lease were valued about £260,000. The average ground rent payable was £50 collected yearly. The lease elapsed on 26 February 2098. Having 72 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.