Main reasons to start your Rossendale lease extension

Main reasons to commence your Rossendale lease extension today:

Increase your lease and increase your Rossendale property value

Rossendale leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Rossendale will usually qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.

Rossendale property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders may decide not to loan monies with a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Rossendale?

Irrespective of whether you are a tenant or a landlord in Rossendale,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rossendale valuers.

Rossendale Lease Extension Example Cases:

Nathaniel, Rossendale, Lancashire,

Nathaniel owned a high value apartment in Rossendale on the market with a lease of a little over 72 years left. Nathaniel on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Rossendale case:

Last Winter we were contacted by Mrs Stephanie Young , who owned a purpose-built flat in Rossendale in July 1999. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Rossendale with an extended lease were valued around £295,000. The average ground rent payable was £45 collected per annum. The lease elapsed in 2100. Considering the 74 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.

Rossendale case:

Mr and Mrs. E Laurent purchased a purpose-built flat in Rossendale in November 2001. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable residencies in Rossendale with a long lease were valued about £243,000. The average amount of ground rent was £65 collected quarterly. The lease came to a finish on 28 April 2089. Given that there were 63 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus costs.