Main reasons to commence your Newton Heath lease extension

Why you should commence your Newton Heath lease extension today:

Increase your lease and increase your Newton Heath property value

Newton Heath leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease drops below 80 years - otherwise a higher premium will be payable. Leasehold owners in Newton Heath will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.

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

Leasehold premises in Newton Heath with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders will not loan monies on a short lease

Most mortgage lenders will not lend on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties to obtain a mortgage and this could result in your Newton Heath property becoming difficult to dispose of or refinance.

What makes us experts in Newton Heath lease extensions?

The conveyancing solicitors that we work with procure Newton Heath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Newton Heath Lease Extension Example Cases:

Isabelle, Newton Heath, Manchester,

In the wake of 9 months of protracted discussions with the freeholder of her garden flat in Newton Heath, Isabelle started the lease extension process as the 80 year threshold was rapidly nearing. The transaction completed in April 2007. The freeholder’s fees were negotiated to less than 700 GBP.

Newton Heath case:

In 2012 we were called by Ms B Bennett who, having was assigned a lease of a ground floor flat in Newton Heath in February 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable homes in Newton Heath with an extended lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease concluded on 4 October 2102. Taking into account 76 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.

Newton Heath case:

Last Christmas we were e-mailed by Dr Morgan Green , who bought a newly refurbished apartment in Newton Heath in March 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical properties in Newton Heath with a long lease were in the region of £257,800. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out on 10 March 2091. Given that there were 65 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including costs.