Top reasons for Lydiate lease extension

Why you should start your Lydiate lease extension today:

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

Lydiate leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Lydiate will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may not grant a mortgage with a short lease

Nearly all mortgage lenders will be unwilling to grant a mortgage on a lease with under 70 years unexpired - although this varies between mortgage companies. A buyer will likely find it difficult to obtain a mortgage and this will result in your Lydiate property being difficult to dispose of or refinance.

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

The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.

Lydiate Lease Extension Example Cases:

Lewis, Lydiate, Merseyside,

Lewis owned a 2 bedroom flat in Lydiate on the market with a lease of fraction over 72 years unexpired. Lewis informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.

Lydiate case:

In 2013 we were e-mailed by Mr and Mrs. H Thomas who, having completed a basement apartment in Lydiate in November 2004. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable flats in Lydiate with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 5 October 2091. Taking into account 65 years as a residual term we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.

Lydiate case:

Ms W Michel took over the lease of a ground floor flat in Lydiate in September 2007. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative residencies in Lydiate with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease ran out in 2080. Given that there were 54 years left we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 not including expenses.