Stop! Your Lease Extension in Ormskirk Could Be FREE

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Many leaseholders in Ormskirk are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Ormskirk has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should start your Ormskirk lease extension

Main reasons to commence your Ormskirk lease extension today:

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

The value of Ormskirk leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold properties in Ormskirk with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders may not grant a mortgage with a short lease

Nearly all mortgage companies require a lengthy amount of time left on any leasehold property before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is probable that someone intending to purchase your property in the future might well do, so where they can't get a mortgage, then the financial worth of your property could be adversely impacted. Since 2008 most banks and building societies have increased the required minimum lease length that they are prepared to accept

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

What makes us experts in Ormskirk lease extensions?

The conveyancing solicitors that we work with procure Ormskirk 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.

Ormskirk Lease Extension Case Summaries:

Rory, Ormskirk, Lancashire,

Rory owned a high value apartment in Ormskirk being sold with a lease of just over sixty years unexpired. Rory informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.

Ormskirk case:

Ms Niamh Morel was assigned a lease of a ground floor flat in Ormskirk in January 1997. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable homes in Ormskirk with an extended lease were worth £245,000. The average ground rent payable was £50 collected quarterly. The lease finished in 2094. Considering the 68 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.

Ormskirk case:

Mrs I Nguyen acquired a basement apartment in Ormskirk in September 2007. The question was if we could estimate the price would be to extend the lease by ninety years. Comparative flats in Ormskirk with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired in 2105. Taking into account 79 years remaining we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.