Why you should commence your Scarborough lease extension

Top reasons for lease extension now:

Increase your lease and increase your Scarborough property value

Scarborough leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is less than eighty 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 to the property. Flat owners in Scarborough will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.

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

Leasehold residencies in Scarborough with more than one hundred 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to loan monies with a short lease

Most high street banks are tightening their criteria and a meaningful number now require flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Given that a number of flats in Scarborough were built in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

What makes us experts in Scarborough lease extensions?

Irrespective of whether you are a tenant or a freeholder in Scarborough,the lease extension lawyers 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 Scarborough valuers.

Scarborough Lease Extension Case Studies:

Rachael, Scarborough, North Yorkshire,

After protracted negotiations with the landlord of her leasehold apartment in Scarborough, Rachael commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension completed in August 2009. The landlord’s charges were kept to an absolute minimum.

Scarborough case:

Dr Ryan Adams purchased a basement flat in Scarborough in August 1997. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative residencies in Scarborough with a long lease were worth £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease termination date was on 24 May 2081. Having 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including costs.

Scarborough case:

Last Christmas we were e-mailed by Mr and Mrs. K Peterson , who acquired a one bedroom flat in Scarborough in August 2011. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable flats in Scarborough with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected annually. The lease end date was on 11 August 2101. Given that there were 75 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.