Main reasons to start your New Farnley lease extension

Why you should start your New Farnley lease extension today:

A New Farnley leasehold property depreciates with the years remaining on the lease.

New Farnley leases on residential deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in New Farnley will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in New Farnley with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Lending institutions will not lend on a short lease

Almost all banks and building societies will be unwilling to lend on a lease with under seventy years unexpired - although this varies from lender to lender. A purchaser will no doubt find it difficult to obtain a mortgage and this will result in your New Farnley property becoming difficult to sell or remortgage.

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

Engaging our service gives you increased control over the value of your New Farnley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.

New Farnley Lease Extension Case Summaries:

William, New Farnley, West Yorkshire,

William owned a conversion apartment in New Farnley being marketed with a lease of fraction over 59 years unexpired. William informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were William to invoke his statutory right. William procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.

New Farnley case:

In 2013 we were e-mailed by Dr Sophie Gómez who, having took over the lease of a garden apartment in New Farnley in January 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar properties in New Farnley with an extended lease were worth £265,000. The average ground rent payable was £50 billed yearly. The lease came to a finish in 2099. Considering the 73 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.

New Farnley case:

In 2010 we were phoned by Ms Melissa Williams who, having acquired a ground floor apartment in New Farnley in August 2010. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical properties in New Farnley with 100 year plus lease were valued around £264,000. The average amount of ground rent was £60 billed quarterly. The lease terminated in 2079. Taking into account 53 years unexpired we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus fees.