Why you should start your Nelson lease extension

Top reasons for lease extension now:

Increase your lease and increase your Nelson property value

Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Nelson. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Nelson have the legal entitlement to extend the lease for an additional 90 years under statute. You should give careful attention before putting off your Nelson lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension

Nelson property with a lease extension is almost the same value as a freehold

Leasehold premises in Nelson with in excess of one hundred years left on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders will not finance a property with a short lease

Mortgage lenders have specific criteria when loaning funds charged on leasehold homes. Many will simply refuse lend at all once the residual lease term slips beneath a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than 75 years as adequate security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Nelson property.

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

Engaging our service will provide you enhanced control over the value of your Nelson leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Nelson Lease Extension Example Cases:

Callum, Nelson, Lancashire

Last Christmas Callum, started to get close to the eighty-year threshold with the lease on his first floor apartment in Nelson. In buying his home 19 years previously, the lease term was of no relevance. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Callum was able to extend his lease at the eleventh hour last July. Callum and the freeholder eventually agreed on the final figure of £5,500 . If the lease had dropped lower than 80 years, the figure would have escalated by a minimum £975.

Nelson case:

In 2012 we were e-mailed by Dr Georgina Smith who, having bought a purpose-built apartment in Nelson in April 2012. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Nelson with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 collected every twelve months. The lease termination date was on 25 February 2081. Having 55 years outstanding we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.

Nelson case:

Mr and Mrs. F Baker was assigned a lease of a ground floor apartment in Nelson in August 2005. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Similar flats in Nelson with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed yearly. The lease ended in 2101. Taking into account 75 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.