Why you should start your Moorends lease extension

Why you should start your Moorends lease extension today:

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

The only way is down when it comes to Moorends lease terms. Moorends leaseholds that have a lease term less than than 80 years will drop in value even faster, and the cost to extend your lease will rise.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Moorends with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lenders will not grant a mortgage with a short lease

Nearly all banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should bear in mind that it is likely that someone wishing to acquire your property in the future might well do, so where they are unable to obtain a mortgage, then the financial worth of the property could suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

Regardless of whether you are a tenant or a freeholder in Moorends,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Moorends valuers.

Moorends Lease Extension Case Summaries:

Luca, Moorends, South Yorkshire

Half a year ago Luca, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Moorends. In buying his flat two decades ago, the lease term was of minimal importance. Luckily, he became aware that he needed to take action soon on Extending the lease. Luca extended the lease just in the nick of time last July. Luca and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had fallen to less than 80 years, the figure would have gone up by at least £900.

Moorends case:

In 2010 we were contacted by Mrs Georgina Gunderson who, having purchased a one bedroom apartment in Moorends in May 2002. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Identical properties in Moorends with a long lease were valued about £270,000. The average ground rent payable was £55 invoiced per annum. The lease terminated on 23 January 2101. Taking into account 75 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Moorends case:

Mr Theo Edwards acquired a one bedroom apartment in Moorends in May 2001. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparative homes in Moorends with a long lease were in the region of £173,800. The average ground rent payable was £60 collected annually. The lease elapsed in 2081. Having 55 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.