Main reasons to commence your Madeley lease extension

Main reasons to commence your Madeley lease extension today:

Increase your lease and increase your Madeley property value

Madeley leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Madeley will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Madeley with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to finance a property with a short lease

Almost all banks and building societies will be unwilling to lend on a lease with under seventy years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Madeley property becoming difficult to sell or to obtain finance on.

Why use us for your lease extension in Madeley?

Regardless of whether you are a tenant or a freeholder in Madeley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Madeley valuers.

Madeley Lease Extension Example Cases:

Blake, Madeley, Shropshire

During the course of the last few months Blake, started to get close to the 80-year mark with the lease on his two bedroom apartment in Madeley. In buying his flat twenty years ago, the unexpired term was of no importance. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Blake arranged for a lease extension just in the nick of time in May. Blake and the freeholder ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £950.

Madeley case:

Mr T Vincent moved into a first floor flat in Madeley in July 1998. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar properties in Madeley with a long lease were valued about £200,000. The mid-range amount of ground rent was £50 billed monthly. The lease end date was in 2103. Taking into account 77 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.

Madeley case:

Dr Chantelle Dupont acquired a purpose-built flat in Madeley in August 1999. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Madeley with an extended lease were valued about £260,200. The average amount of ground rent was £65 collected yearly. The lease ran out on 6 March 2092. Given that there were 66 years outstanding we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus fees.