Why you should start your Rufford lease extension

Why you should commence your Rufford lease extension today:

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

The market value of a leasehold property in Rufford depends on how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year mark. Statute entitles Rufford qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Rufford with over 100 years remaining on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to finance a property on a short lease

The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Rufford lease extensions?

Regardless of whether you are a tenant or a landlord in Rufford,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 experience and the close ties they enjoy with Rufford valuers.

Rufford Lease Extension Example Cases:

Kate, Rufford, Lancashire,

After protracted negotiations with the freeholder of her leasehold flat in Rufford, Kate commenced the lease extension process as the 80 year threshold was rapidly nearing. The transaction was finalised in July 2011. The landlord’s fees were restricted to under 550 pounds.

Rufford case:

Last year we were called by Dr Jennifer Martinez , who completed a purpose-built flat in Rufford in February 2007. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Rufford with an extended lease were worth £174,200. The average amount of ground rent was £55 billed monthly. The lease end date was on 16 October 2077. Considering the 51 years as a residual term we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.

Rufford case:

Mr Finley Sánchez owned a first floor apartment in Rufford in May 2008. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Rufford with 100 year plus lease were worth £285,000. The average ground rent payable was £45 invoiced per annum. The lease ran out on 2 November 2097. Having 71 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.