Why you should commence your Northleach lease extension

Top reasons for lease extension now:

Increase your lease and increase your Northleach property value

As the the remaining lease term of a Northleach residential lease diminished so does its value and therefore the value of your property. If the lease has, more than 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years left 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 logic behind why you should consider extending without delay. Most flat owners in Northleach will qualify for this right; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may decide not to lend on a short lease

Most banks and building societies will not lend on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will likely find it difficult to obtain a mortgage and this could result in your Northleach property being difficult to dispose of or to obtain finance on.

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

The lawyers that we work with procure Northleach 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.

Northleach Lease Extension Case Summaries:

Courtney, Northleach, Gloucestershire,

In the wake of eight months of protracted negotiations with the landlord of her two bedroom flat in Northleach, Courtney commenced the lease extension process as the 80 year threshold was fast approaching. The transaction completed in November 2012. The landlord’s costs were kept to an absolute minimum.

Northleach case:

In 2010 we were called by Mr G Anderson who, having purchased a first floor flat in Northleach in March 2004. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Northleach with 100 year plus lease were valued about £295,000. The average amount of ground rent was £50 billed per annum. The lease lapsed on 20 April 2101. Considering the 75 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.

Northleach case:

Last Spring we were e-mailed by Mrs Catherine Harris , who moved into a garden flat in Northleach in January 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Northleach with 100 year plus lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed in 2090. Considering the 64 years unexpired we estimated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus professional charges.