Top reasons for Peak District lease extension

Top reasons for lease extension now:

Increase your lease and increase your Peak District property value

The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Peak District have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Peak District lease extension. Shelving that expense today simply escalates the amount you will ultimately be required to pay to extend the lease.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders will not finance a property with a short lease

Banks and building societies are really restricting their approach as regards to properties in Peak District with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus limiting your market.

What makes us experts in Peak District lease extensions?

Retaining our service will provide you better control over the value of your Peak District leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Peak District Lease Extension Case Studies:

Eliot, Peak District, Derbyshire,

Eliot owned a 2 bedroom apartment in Peak District being marketed with a lease of just over 59 years outstanding. Eliot informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

Peak District case:

In 2011 we were phoned by Dr G Gray who, having completed a ground floor flat in Peak District in March 2008. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar homes in Peak District with an extended lease were valued about £215,600. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed on 12 September 2088. Taking into account 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.

Peak District case:

In 2012 we were e-mailed by Ms Rebecca Díaz who, having took over the lease of a ground floor flat in Peak District in January 2002. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Peak District with an extended lease were worth £265,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed in 2099. Considering the 73 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.