Why you should start your Markyate lease extension

Top reasons for lease extension now:

Increase your lease and increase your Markyate property value

When it comes to residential leasehold premises in Markyate, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years left. Residents in Markyate with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has less than eighty years left, under the relevant statute the freeholder can calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may not finance a property on a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Markyate property being difficult to dispose of or refinance.

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

Retaining our service will provide you enhanced control over the value of your Markyate leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Markyate Lease Extension Case Studies:

Finley, Markyate, Hertfordshire

Last Autumn Finley, came very near to the 80-year threshold with the lease on his first floor flat in Markyate. In buying his flat two decades ago, the length of the lease was of minimal concern. Fortunately, he noticed he needed to take action soon on a lease extension. Finley arranged for a lease extension just under the wire last August. Finley and the freeholder via the management company subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have escalated by a minimum £950.

Markyate case:

In 2009 we were called by Ms P Bennett who, having moved into a ground floor flat in Markyate in March 1996. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical properties in Markyate with 100 year plus lease were valued about £275,000. The average ground rent payable was £65 invoiced yearly. The lease ran out in 2094. Having 68 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.

Markyate case:

Mr and Mrs. W Murphy completed a one bedroom apartment in Markyate in February 2000. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable residencies in Markyate with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease expiry date was on 5 September 2083. Having 57 years as a residual term we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.