Top reasons for Northop lease extension

Main reasons to start your Northop lease extension today:

Increase your lease and increase your Northop property value

Northop leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Northop tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Northop you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Northop with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to finance a property on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past mortgage companies were content with 25 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 now have a minimum term of 75 years as standard.

Why use us for your lease extension in Northop?

The conveyancers that we work with undertake Northop 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.

Northop Lease Extension Case Summaries:

Reuben, Northop, Flintshire

In 2014 Reuben, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Northop. Having bought his property two decades ago, the length of the lease was of no interest. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Reuben extended the lease just under the wire in July. Reuben and the landlord eventually agreed on an amount of £5,000 . If he had missed the deadline, the figure would have become more costly by a minimum £900.

Northop case:

Mr and Mrs. J Stewart was assigned a lease of a purpose-built apartment in Northop in July 2009. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Similar premises in Northop with an extended lease were in the region of £245,000. The average amount of ground rent was £50 billed monthly. The lease expired on 20 May 2094. Considering the 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.

Northop case:

In 2010 we were phoned by Dr William Jones who, having bought a ground floor flat in Northop in June 2002. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable residencies in Northop with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ended in 2105. Having 79 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.