Why you should commence your Mickleover lease extension

Why you should start your Mickleover lease extension today:

A Mickleover lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Mickleover is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised well before the eighty year threshold. Statute enables Mickleover qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold residencies in Mickleover with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not grant a mortgage with a short lease

Almost all banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will consider lending on it. Even if you don't require a mortgage, you should be conscious that it is likely that someone intending to buy your property in the future might well do, so in the event that they can't secure a mortgage, then the financial worth of your property could suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to lend on

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

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

Mickleover Lease Extension Example Cases:

Bethan, Mickleover, Derbyshire,

Trailing lengthy negotiations with the freeholder of her leasehold flat in Mickleover, Bethan commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction completed in July 2014. The freeholder’s charges were kept to an absolute minimum.

Mickleover case:

Mr W Nguyen bought a first floor apartment in Mickleover in March 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Mickleover with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2104. Given that there were 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.

Mickleover case:

Mr and Mrs. W Leroy bought a basement apartment in Mickleover in February 1997. We are asked if we could estimate the price would be for a 90 year lease extension. Identical residencies in Mickleover with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced monthly. The lease expired in 2093. Having 67 years remaining we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.