Why you should start your Sileby lease extension

Top reasons for lease extension now:

A Sileby leasehold property depreciates with the years remaining on the lease.

Sileby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Sileby tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Sileby you would be well advised to investigate if your lease has between 70 and 90 years left. There are good reasons why a Sileby leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to grant a mortgage on a short lease

Banks and Building Societies have set criteria when lending funds charged on leasehold property. Some will simply not lend at all once the residual lease term drops beneath a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Sileby home.

Why use us for your lease extension in Sileby?

Regardless of whether you are a tenant or a freeholder in Sileby,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sileby valuers.

Sileby Lease Extension Case Summaries:

Lucas, Sileby, Leicestershire,

Lucas owned a studio flat in Sileby being marketed with a lease of just over fifty eight years outstanding. Lucas informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Lucas to exercise his statutory right. Lucas procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.

Sileby case:

Dr Stanley Fournier purchased a purpose-built apartment in Sileby in February 2007. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Sileby with a long lease were in the region of £191,000. The mid-range amount of ground rent was £65 collected monthly. The lease concluded on 4 April 2084. Taking into account 58 years remaining we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of professional charges.

Sileby case:

Mr and Mrs. N Allen moved into a studio flat in Sileby in January 2004. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparable residencies in Sileby with a long lease were valued around £250,000. The average ground rent payable was £50 billed quarterly. The lease came to a finish in 2095. Taking into account 69 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.