Main reasons to commence your North End lease extension

Main reasons to start your North End lease extension today:

Increase your lease and increase your North End property value

There is no doubt about it a leasehold property in North End is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in North End will qualify for this right; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

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

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders may decide not to loan monies with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Lease extensions in North End can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 North End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

North End Lease Extension Example Cases:

Alex, North End, Hampshire,

Alex owned a high value flat in North End on the market with a lease of a few days over 59 years outstanding. Alex on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to exercise his statutory right. Alex procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

North End case:

Last August we were phoned by Mr and Mrs. R Turner , who completed a one bedroom apartment in North End in July 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in North End with 100 year plus lease were valued about £227,800. The mid-range ground rent payable was £45 billed yearly. The lease ran out in 2091. Having 65 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.