Why you should commence your Mansfield Woodhouse lease extension

Why you should start your Mansfield Woodhouse lease extension today:

A Mansfield Woodhouse leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Mansfield Woodhouse is impacted by how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year cut off point. Leasehold Reform legislation enables Mansfield Woodhouse qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Mansfield Woodhouse with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders will not lend on a short lease

The propensity since over the last decade has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Lease extensions in Mansfield Woodhouse can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Mansfield Woodhouse lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Mansfield Woodhouse Lease Extension Case Summaries:

Katie, Mansfield Woodhouse, Nottinghamshire,

Off the back of lengthy negotiations with the freeholder of her first floor apartment in Mansfield Woodhouse, Katie initiated the lease extension process as the eighty year mark was quickly nearing. The legal work completed in January 2007. The freeholder’s costs were restricted to about five hundred pounds.

Mansfield Woodhouse case:

In 2009 we were approached by Ms Morgan Sharif who, having took over the lease of a basement apartment in Mansfield Woodhouse in April 2007. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Mansfield Woodhouse with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease end date was on 8 June 2097. Having 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.

Mansfield Woodhouse case:

Mr and Mrs. T Patel was assigned a lease of a one bedroom apartment in Mansfield Woodhouse in April 1999. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative flats in Mansfield Woodhouse with an extended lease were valued about £249,200. The mid-range amount of ground rent was £60 collected quarterly. The lease ended on 14 November 2077. Given that there were 51 years outstanding we estimated the compensation to the landlord to extend the lease to be between £42,800 and £49,400 not including professional charges.