Top reasons for Ranmoor lease extension

Why you should commence your Ranmoor lease extension today:

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

With a long leasehold property in Ranmoor, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are less than eighty years left. Anyone in Ranmoor with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has less than eighty years outstanding, under the current statute the landlord can calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold residencies in Ranmoor with over 100 years left on the lease are often referred to as ‘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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not finance a property with a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Ranmoor lease extensions?

The lawyers that we work with undertake Ranmoor 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.

Ranmoor Lease Extension Case Studies:

Ethan, Ranmoor, South Yorkshire

Last year Ethan, came precariously close to the 80-year mark with the lease on his one bedroom flat in Ranmoor. In buying his home 19 years previously, the lease term was of little significance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Ethan was able to extend his lease at the eleventh hour in May. Ethan and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If he had missed the deadline, the price would have escalated by a minimum £1,150.

Ranmoor case:

In 2013 we were approached by Mrs Molly Ali who, having acquired a ground floor flat in Ranmoor in September 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in Ranmoor with 100 year plus lease were worth £186,000. The mid-range amount of ground rent was £65 collected annually. The lease expired on 11 January 2084. Given that there were 58 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of expenses.

Ranmoor case:

In 2012 we were called by Mr Y Simon who, having owned a one bedroom flat in Ranmoor in August 1998. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable premises in Ranmoor with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected per annum. The lease lapsed on 19 April 2095. Taking into account 69 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.