Why you should commence your Reddish lease extension

Why you should start your Reddish lease extension today:

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

Unfortunately that a Reddish residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Reddish property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Reddish will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.

Lenders may not lend with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get jittery at around 75 years. This may be problematic once you wish to dispose of or refinance your property as it will be practically unmortgageable. You may not have an imminent plan to sell but when you do your purchaser must wait a couple of years before they can exercise the right to a an extension to the lease.

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

Irrespective of whether you are a tenant or a freeholder in Reddish,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 in-depth market knowledge and the close ties they enjoy with Reddish valuers.

Reddish Lease Extension Example Cases:

Rosie, Reddish, Greater Manchester,

Following protracted discussions with the landlord of her one bedroom apartment in Reddish, Rosie commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension was concluded in February 2012. The landlord’s fees were kept to an absolute minimum.

Reddish case:

Last month we were called by Mr and Mrs. J Hill , who owned a ground floor apartment in Reddish in August 2009. The dilemma 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 Reddish with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected annually. The lease ended on 9 August 2088. Considering the 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including legals.

Reddish case:

In 2011 we were e-mailed by Mr and Mrs. W Dupont who, having completed a garden flat in Reddish in May 2012. We are asked if we could estimate the price could be for a ninety year lease extension. Identical flats in Reddish with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish on 26 August 2099. Given that there were 73 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.