Main reasons to start your Lydiate lease extension

Top reasons for lease extension now:

Increase your lease and increase your Lydiate property value

Lydiate residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Lydiate with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not loan monies with a short lease

Mortgage lenders have set criteria when lending funds secured on leasehold homes. Many will simply refrain from lending at all once the residual lease term slips below a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired term of less than seventy years suitable security. As well as this being important when selling, it is also relevant if you are seeking to refinance your Lydiate property.

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

The conveyancing solicitors that we work with procure Lydiate 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.

Lydiate Lease Extension Example Cases:

Luke, Lydiate, Merseyside,

Luke owned a 2 bedroom flat in Lydiate being sold with a lease of a few days over 59 years outstanding. Luke informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Lydiate case:

Last Spring we were contacted by Dr I Nelson , who owned a first floor flat in Lydiate in February 1999. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Identical flats in Lydiate with an extended lease were in the region of £184,000. The mid-range amount of ground rent was £55 collected per annum. The lease terminated on 19 January 2079. Considering the 53 years left we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.

Lydiate case:

Mr and Mrs. F Flores was assigned a lease of a basement apartment in Lydiate in June 2009. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Identical properties in Lydiate with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected monthly. The lease terminated on 6 April 2099. Given that there were 73 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.