Top reasons for Mountsorrel lease extension

Why you should start your Mountsorrel lease extension today:

A Mountsorrel leasehold property depreciates with the years remaining on the lease.

The market value of Mountsorrel leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold premises in Mountsorrel with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not loan monies on a short lease

Lending institutions have specific criteria when lending monies secured on leasehold property. Many will simply refuse lend at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than seventy years as adequate security. As well as impacting your ability to sell, it is also relevant if you are wanting to refinance your Mountsorrel home.

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

Engaging our service gives you better control over the value of your Mountsorrel leasehold, as your property will be more valuable and saleable in relation to the lease length should you want 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.

Mountsorrel Lease Extension Case Studies:

Liam, Mountsorrel, Leicestershire

In 2014 Liam, came very close to the 80-year mark with the lease on his studio flat in Mountsorrel. Having purchased his flat two decades ago, the lease term was of minimal relevance. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Liam extended the lease at the eleventh hour last August. Liam and the landlord ultimately agreed on an amount of £5,000 . If the lease had dropped below eighty years, the sum would have gone up by a minimum £1,100.

Mountsorrel case:

Last June we were e-mailed by Dr C Rose , who bought a basement flat in Mountsorrel in November 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical homes in Mountsorrel with a long lease were worth £285,000. The mid-range ground rent payable was £45 billed yearly. The lease expired in 2098. Taking into account 72 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.

Mountsorrel case:

In 2011 we were e-mailed by Mr and Mrs. Y Martin who, having was assigned a lease of a purpose-built flat in Mountsorrel in June 2012. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable homes in Mountsorrel with an extended lease were worth £233,200. The average ground rent payable was £60 billed quarterly. The lease lapsed on 23 September 2087. Having 61 years outstanding we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including professional charges.