Top reasons for Settle lease extension

Main reasons to commence your Settle lease extension today:

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

The market value of a leasehold property in Settle is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be finalised prior to the 80 year mark. Current legislation entitles Settle qualifying lessees to an additional term of ninety years on top of the unexpired term, at a nominal rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may not finance a property with a short lease

Most banks and building societies will not grant a mortgage on a lease with less than 70 years unexpired - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Settle property being difficult to sell or remortgage.

What makes us experts in Settle lease extensions?

Retaining our service will provide you increased control over the value of your Settle leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Settle Lease Extension Case Studies:

Seth, Settle, North Yorkshire

In recent months Seth, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Settle. In buying his home two decades ago, the unexpired term was of no significance. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Seth arranged for a lease extension just under the wire in July. Seth and the freeholder in the end agreed on sum of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £925.

Settle case:

Mr Tommy François owned a newly refurbished apartment in Settle in July 1997. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Similar residencies in Settle with a long lease were in the region of £206,200. The average ground rent payable was £60 collected per annum. The lease ran out in 2082. Considering the 56 years outstanding we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.

Settle case:

Ms Poppy Morris took over the lease of a one bedroom flat in Settle in March 2002. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative flats in Settle with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease concluded in 2102. Considering the 76 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.