Main reasons to commence your Northern Moor lease extension

Why you should commence your Northern Moor lease extension today:

A Northern Moor lease depreciates with the years remaining on the lease.

The market value of Northern Moor leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than 80 years

Northern Moor property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.

Lenders may decide not to grant a mortgage with a short lease

Many banks and building societies will be unwilling to lend on a lease with less than seventy years left to run - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this could result in your Northern Moor property being difficult to sell or remortgage.

Why use us for your lease extension in Northern Moor?

The lawyers that we work with handle Northern Moor 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 conveyancing solicitor we work with provide it.

Northern Moor Lease Extension Case Studies:

George, Northern Moor, Manchester,

George was the the leasehold proprietor of a studio apartment in Northern Moor being marketed with a lease of fraction over 59 years outstanding. George 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 subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were George to invoke his statutory right. George procured expert advice and secured an acceptable deal informally and ending up with a market value flat.

Northern Moor case:

In 2010 we were e-mailed by Mr Lewis Jackson who, having purchased a one bedroom apartment in Northern Moor in November 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Northern Moor with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 invoiced annually. The lease came to a finish on 2 September 2079. Given that there were 53 years left we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.

Northern Moor case:

Ms Jade Williams acquired a purpose-built apartment in Northern Moor in August 2003. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Northern Moor with a long lease were in the region of £290,000. The average ground rent payable was £45 collected per annum. The lease elapsed on 8 August 2099. Given that there were 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.