Top reasons for Skellingthorpe lease extension

Why you should commence your Skellingthorpe lease extension today:

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

Skellingthorpe 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 gets more expensive. Legislation has been in place for sometime now which entitles qualifying Skellingthorpe residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Skellingthorpe you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

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

Leasehold premises in Skellingthorpe with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to issue a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become nervous at around 75 years. This will be problematic once you need to market or refinance your property as it will be practically unmortgageable. You might not have an immediate plan to sell but when you do your purchaser will need to hold off for a couple of years before they can start the legal procedures for a lease extension.

What makes us experts in Skellingthorpe lease extensions?

Using our service will provide you better control over the value of your Skellingthorpe leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Skellingthorpe Lease Extension Case Summaries:

Jayden, Skellingthorpe, Lincolnshire,

Jayden owned a studio flat in Skellingthorpe being sold with a lease of a little over fifty eight years outstanding. Jayden informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.

Skellingthorpe case:

Last Winter we were phoned by Mr Dexter Turner , who took over the lease of a one bedroom apartment in Skellingthorpe in February 2011. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical properties in Skellingthorpe with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 billed monthly. The lease concluded in 2101. Taking into account 75 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.

Skellingthorpe case:

In 2013 we were called by Mr and Mrs. H Wright who, having took over the lease of a one bedroom flat in Skellingthorpe in October 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Skellingthorpe with an extended lease were worth £250,400. The average ground rent payable was £65 billed per annum. The lease concluded on 27 March 2090. Considering the 64 years unexpired we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 not including expenses.