Why you should commence your Preston lease extension

Why you should start your Preston lease extension today:

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

With a residential leasehold property in Preston, 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 consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years left. Residents in Preston with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years outstanding, under the relevant legislation the landlord can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 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 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This will cause difficulties as and when you come to sell or remortgage your flat as it will be practically unmortgageable. Even though you may have no immediate plan to sell but when you do your buyer will have to hold off for 2 years before being able to exercise the right to a a lease extension.

Why use us for your lease extension in Preston?

Irrespective of whether you are a tenant or a freeholder in Preston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Preston valuers.

Preston Lease Extension Case Summaries:

Seth, Preston, Lancashire

Last October Seth, came perilously near to the eighty-year mark with the lease on his garden apartment in Preston. In buying his property two decades ago, the length of the lease was of little relevance. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Seth arranged for a lease extension just in the nick of time last August. Seth and the freeholder eventually settled on an amount of £5,500 . If he failed to meet the deadline, the price would have become more costly by a minimum £850.

Preston case:

Last May we were e-mailed by Dr Jamie Davis , who owned a one bedroom apartment in Preston in September 1998. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Preston with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected per annum. The lease termination date was in 2080. Taking into account 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.