Why you should start your Neston lease extension

Why you should commence your Neston lease extension today:

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

When it comes to domestic leasehold premises in Neston, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Neston with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has fewer than eighty years left, under the relevant Act the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Neston with over 100 years unexpired on the lease are sometimes referred to as ‘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 maintenance charges justify it.

Lenders will not lend on a short lease

Many mortgage companies will be unwilling to grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this could result in your Neston property being difficult to sell or remortgage.

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

Lease extensions in Neston can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Neston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Neston Lease Extension Case Studies:

Catherine, Neston, Cheshire,

Trailing unsuccessful discussions with the freeholder of her one bedroom apartment in Neston, Catherine started the lease extension process just as the lease was approaching the all-important eighty-year mark. The transaction completed in March 2011. The landlord’s charges were kept to an absolute minimum.

Neston case:

In 2013 we were phoned by Dr C Anderson who, having bought a first floor flat in Neston in May 2011. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Neston with an extended lease were valued around £191,400. The mid-range ground rent payable was £55 billed annually. The lease finished in 2080. Having 54 years remaining we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.

Neston case:

In 2010 we were phoned by Mrs O Morgan who, having moved into a garden flat in Neston in August 2009. The question was if we could estimate the price would be for a ninety year lease extension. Comparative properties in Neston with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed monthly. The lease ended in 2100. Taking into account 74 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.