Main reasons to commence your Marchington lease extension

Main reasons to commence your Marchington lease extension today:

Increase your lease and increase your Marchington property value

Marchington residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

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

Leasehold properties in Marchington with more than 100 years outstanding on the lease are sometimes regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may not grant a mortgage with a short lease

Most banks and building societies insist on a lengthy amount of time remaining on any leasehold residence before they will consider providing a mortgage on it. Even if you don't require a mortgage, you should keep in mind that it is likely that someone intending to acquire your property in the future might well do, so in the event that they can't get a mortgage, then the market price of the property will likely suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are willing to accept

What makes us experts in Marchington lease extensions?

Regardless of whether you are a tenant or a landlord in Marchington,the lease extension experts 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 Marchington valuers.

Marchington Lease Extension Case Studies:

Rhiannon, Marchington, Staffordshire,

Off the back of protracted negotiations with the landlord of her leasehold apartment in Marchington, Rhiannon started the lease extension process as the eighty year deadline was swiftly approaching. The transaction was finalised in May 2007. The landlord’s costs were kept to an absolute minimum.

Marchington case:

In 2014 we were phoned by Dr A Clark who, having took over the lease of a one bedroom flat in Marchington in April 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Marchington with a long lease were worth £198,800. The average ground rent payable was £55 collected per annum. The lease elapsed on 3 November 2081. Given that there were 55 years left we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of legals.

Marchington case:

Last year we were called by Dr Chantelle Hall , who moved into a garden apartment in Marchington in September 1995. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical premises in Marchington with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2101. Considering the 75 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.