Why you should start your Miles Platting lease extension

Top reasons for lease extension now:

A Miles Platting lease depreciates with the years remaining on the lease.

When it comes to long leasehold premises in Miles Platting, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in Miles Platting with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has fewer than 80 years left, under the current legislation the landlord can calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold properties in Miles Platting with in excess of 100 years left 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders will not loan monies with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

The conveyancers that we work with procure Miles Platting lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Miles Platting Lease Extension Case Summaries:

Rosie, Miles Platting, Greater Manchester,

Off the back of unsuccessful negotiations with the landlord of her purpose-built flat in Miles Platting, Rosie started the lease extension process as the eighty year threshold was quickly nearing. The legal work was concluded in August 2014. The freeholder’s charges were kept to an absolute minimum.

Miles Platting case:

Last year we were called by Dr A Murphy , who completed a one bedroom apartment in Miles Platting in January 2007. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative properties in Miles Platting with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 billed every twelve months. The lease ended in 2089. Considering the 63 years outstanding we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.

Miles Platting case:

Last Christmas we were contacted by Mrs T François , who took over the lease of a one bedroom flat in Miles Platting in October 2005. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Identical premises in Miles Platting with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed monthly. The lease ran out in 2100. Taking into account 74 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.