Main reasons to commence your Sedbergh lease extension

Top reasons for lease extension now:

Increase your lease and increase your Sedbergh property value

Sedbergh residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Sedbergh with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may not issue a mortgage with a short lease

Most banks and building societies will be unwilling to lend on a lease with less than 70 years unexpired - although this varies from lender to lender. A buyer will undoubtedly find it difficult to obtain a mortgage and this could result in your Sedbergh property becoming difficult to sell or remortgage.

What makes us experts in Sedbergh lease extensions?

The conveyancers that we work with undertake Sedbergh lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Sedbergh Lease Extension Case Summaries:

Aaron, Sedbergh, Cumbria

During the course of the last few months Aaron, started to get close to the eighty-year mark with the lease on his garden flat in Sedbergh. In buying his property 19 years ago, the unexpired term was of little bearing. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Aaron was able to extend his lease just ahead of time in August. Aaron and the landlord ultimately agreed on an amount of £5,500 . If the lease had dipped below 80 years, the sum would have increased by a minimum £1,150.

Sedbergh case:

In 2009 we were phoned by Mrs I Bernard who, having owned a one bedroom apartment in Sedbergh in November 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Sedbergh with a long lease were valued around £265,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out on 14 August 2099. Taking into account 73 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Sedbergh case:

In 2011 we were called by Mrs N Taylor who, having completed a garden apartment in Sedbergh in July 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar flats in Sedbergh with an extended lease were worth £264,000. The average ground rent payable was £60 collected quarterly. The lease came to a finish in 2079. Given that there were 53 years left we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus legals.