Main reasons to start your Polesworth lease extension

Main reasons to commence your Polesworth lease extension today:

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

With a residential leasehold property in Polesworth, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Residents in Polesworth with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has under 80 years left, under the current legislation the freeholder can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold properties in Polesworth with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.

Lending institutions may decide not to grant a mortgage on a short lease

Mortgage companies are tightening their criteria and many now want flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. Given that a number of flats in Polesworth were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to get a mortgage.

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

The conveyancing solicitors that we work with handle Polesworth 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 conveyancer we work with provide it.

Polesworth Lease Extension Example Cases:

Kelsey, Polesworth, Warwickshire,

Trailing unsuccessful discussions with the landlord of her one bedroom flat in Polesworth, Kelsey started the lease extension process as the 80 year mark was swiftly coming. The legal work was concluded in September 2015. The landlord’s costs were restricted to about 500 pounds.

Polesworth case:

Dr Leon Pérez was assigned a lease of a ground floor apartment in Polesworth in June 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative residencies in Polesworth with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 collected annually. The lease ended on 10 April 2079. Given that there were 53 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus expenses.

Polesworth case:

Dr Dexter Moore purchased a one bedroom apartment in Polesworth in March 1997. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Similar flats in Polesworth with an extended lease were valued around £290,000. The average ground rent payable was £45 billed per annum. The lease ran out on 11 January 2099. Taking into account 73 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.