Why you should start your Retford lease extension

Why you should commence your Retford lease extension today:

Increase your lease and increase your Retford property value

Chances are that if you own a flat in Retford you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold premises in Retford with more than one hundred 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may not loan monies on a short lease

Nearly all mortgage companies will not lend on a lease with less than seventy years unexpired - although this varies from lender to lender. A buyer will likely encounter difficulties in obtaining a mortgage and this could result in your Retford property becoming difficult to dispose of or refinance.

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

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

Retford Lease Extension Example Cases:

James, Retford, Nottinghamshire,

James owned a high value flat in Retford on the market with a lease of a little over 59 years unexpired. James on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were James to exercise his statutory right. James procured expert legal guidance and secured satisfactory resolution informally and readily saleable.

Retford case:

In 2009 we were e-mailed by Mr and Mrs. C Jones who, having purchased a ground floor flat in Retford in June 2003. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable premises in Retford with a long lease were valued about £243,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease concluded on 25 October 2089. Given that there were 63 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus fees.

Retford case:

Last Autumn we were e-mailed by Mr E Ramírez , who acquired a one bedroom flat in Retford in January 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Retford with a long lease were in the region of £181,600. The average ground rent payable was £55 collected monthly. The lease ended on 6 January 2078. Having 52 years unexpired we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of legals.