Main reasons to start your Mossley lease extension

Main reasons to commence your Mossley lease extension today:

Increase your lease and increase your Mossley property value

The re-sale value of a leasehold property in Mossley is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed prior to the 80 year mark. Statute enables Mossley qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Mossley with in excess of one hundred years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not lend on a short lease

Most mortgage lenders will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Mossley property becoming difficult to sell or to obtain finance on.

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

Regardless of whether you are a tenant or a freeholder in Mossley,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 Mossley valuers.

Mossley Lease Extension Case Summaries:

Dexter, Mossley, Greater Manchester

Last year Dexter, started to get near to the eighty-year mark with the lease on his garden flat in Mossley. In buying his property two decades ago, the unexpired term was of minimal relevance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Dexter was able to extend his lease just under the wire in March. Dexter and the freeholder via the managing agents subsequently agreed on an amount of £6,000 . If he not met the deadline, the sum would have increased by at least £1,025.

Mossley case:

Ms Ashleigh Cox acquired a studio flat in Mossley in August 1999. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar premises in Mossley with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 billed yearly. The lease expired in 2083. Given that there were 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.

Mossley case:

Dr Zachary Torres purchased a recently refurbished apartment in Mossley in November 1996. The question was if we could estimate the price would be to extend the lease by ninety years. Identical premises in Mossley with an extended lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected yearly. The lease expiry date was in 2094. Having 68 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.