Top reasons for Mansfield lease extension

Top reasons for lease extension now:

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

Mansfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Mansfield residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Mansfield you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

Mansfield property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Mansfield with in excess of one hundred years outstanding 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to loan monies with a short lease

Lending institutions have specific criteria when loaning funds charged on leasehold homes. Some will simply not lend at all once the residual lease term slips below a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to refinance your Mansfield property.

Why use us for your lease extension in Mansfield?

Lease extensions in Mansfield can be a difficult process. We recommend you secure guidance 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 in-depth market knowledge dealing with Mansfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Mansfield Lease Extension Case Summaries:

Bethan, Mansfield, Nottinghamshire,

Off the back of protracted correspondence with the freeholder of her basement apartment in Mansfield, Bethan initiated the lease extension process just as the lease was coming close to the critical eighty-year deadline. The legal work was concluded in July 2005. The landlord’s fees were kept to an absolute minimum.

Mansfield case:

Ms M Mercier owned a garden apartment in Mansfield in July 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar flats in Mansfield with an extended lease were worth £193,400. The average amount of ground rent was £65 collected quarterly. The lease lapsed on 25 November 2085. Considering the 59 years remaining we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus legals.

Mansfield case:

Last Summer we were contacted by Mr Ali Campbell , who acquired a one bedroom flat in Mansfield in September 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Mansfield with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected annually. The lease elapsed in 2096. Given that there were 70 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.