Top reasons for Madeley lease extension

Main reasons to commence your Madeley lease extension today:

Increase your lease and increase your Madeley property value

Madeley residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not lend on a short lease

Banks and building societies are really restricting their approach as regards to properties in Madeley with short leases. For instance you may find 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 refrain from lending completely, so if you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus limiting the number of prospective buyers.

Why use us for your lease extension in Madeley?

Irrespective of whether you are a tenant or a freeholder in Madeley,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 Madeley valuers.

Madeley Lease Extension Example Cases:

Blake, Madeley, Shropshire

In 2014 Blake, came perilously near to the eighty-year threshold with the lease on his garden flat in Madeley. In buying his property two decades ago, the lease term was of minimal bearing. As luck would have it, he realised he needed to take steps soon on a lease extension. Blake arranged for a lease extension just under the wire last April. Blake and the freeholder eventually agreed on an amount of £6,000 . If the lease had gone to less than 80 years, the sum would have increased by a minimum £1,050.

Madeley case:

Ms K Brown moved into a basement flat in Madeley in May 2011. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable flats in Madeley with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 collected quarterly. The lease terminated on 28 April 2084. Given that there were 58 years left we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of expenses.

Madeley case:

Last Summer we were approach by Mr and Mrs. U Ali , who took over the lease of a studio flat in Madeley in April 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Madeley with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished in 2104. Given that there were 78 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.