Main reasons to commence your Ormskirk lease extension

Top reasons for lease extension now:

A Ormskirk lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Ormskirk. Clearly, the term of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Ormskirk have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before putting off your Ormskirk lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions will not loan monies with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to become nervous at around 75 years. This will be problematic when you wish to dispose of or refinance your property as it will be practically unmortgageable. You may not have an immediate plan to sell but when you do your buyer must wait two years before being able to commence the legal procedures for a lease extension.

What makes us experts in Ormskirk lease extensions?

Retaining our service gives you better control over the value of your Ormskirk leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Ormskirk Lease Extension Example Cases:

Poppy, Ormskirk, Lancashire,

Off the back of lengthy discussions with the freeholder of her two bedroom apartment in Ormskirk, Poppy commenced the lease extension process as the 80 year threshold was swiftly approaching. The lease extension completed in June 2015. The freeholder’s charges were negotiated to slightly above 600 GBP.

Ormskirk case:

Mr D Ricardo was assigned a lease of a recently refurbished apartment in Ormskirk in February 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Ormskirk with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected monthly. The lease concluded in 2101. Given that there were 75 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.

Ormskirk case:

In 2013 we were approached by Dr R Mercier who, having owned a ground floor flat in Ormskirk in March 2011. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable premises in Ormskirk with 100 year plus lease were valued about £168,800. The mid-range ground rent payable was £60 billed every twelve months. The lease concluded in 2081. Considering the 55 years remaining we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of legals.