Why you should start your Neston lease extension

Why you should commence your Neston lease extension today:

Increase your lease and increase your Neston property value

Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Neston. Clearly, the period of lease left reduces as time goes by. This is often ignored and only becomes a problem when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Neston have the right to extend the lease for an additional 90 years in accordance with legislation. Do give careful consideration before delaying your Neston lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage with a short lease

The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Irrespective of whether you are a tenant or a landlord in Neston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Neston valuers.

Neston Lease Extension Example Cases:

Omar, Neston, Cheshire

Last Christmas Omar, started to get near to the 80-year mark with the lease on his purpose- built flat in Neston. In buying his home 19 years previously, the length of the lease was of no importance. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Omar arranged for a lease extension at the eleventh hour in September. Omar and the landlord subsequently settled on sum of £5,500 . If the lease had dipped to less than 80 years, the price would have become more costly by at least £1,150.

Neston case:

Last month we were approach by Mrs Eleanor Kelly , who moved into a purpose-built apartment in Neston in September 2006. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparable residencies in Neston with a long lease were worth £295,000. The average amount of ground rent was £50 invoiced monthly. The lease expired in 2100. Having 75 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.

Neston case:

Mr and Mrs. T García was assigned a lease of a garden flat in Neston in July 2003. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparative properties in Neston with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed yearly. The lease elapsed in 2089. Having 64 years left we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including professional charges.