Main reasons to start your South Normanton lease extension

Why you should commence your South Normanton lease extension today:

A South Normanton lease depreciates with the years remaining on the lease.

The value of South Normanton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold residencies in South Normanton with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may not loan monies with a short lease

Lenders do not like short residential leases. You are likely to encounter problems where you need to sell your flat in South Normanton if the unexpired term of your lease is under the criteria set by the majority of lenders. Different lenders have different criteria but generally they are looking for an unexpired term of at least 65 years.

Get in touch with one of our South Normanton lease extension solicitors or enfranchisement solicitors

Engaging our service gives you increased control over the value of your South Normanton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

South Normanton Lease Extension Example Cases:

Chloe, South Normanton, Derbyshire,

Subsequent to unsuccessful correspondence with the freeholder of her leasehold apartment in South Normanton, Chloe commenced the lease extension process as the eighty year threshold was fast nearing. The legal work completed in September 2013. The freeholder’s fees were restricted to approximately 550 GBP.

South Normanton case:

Mr and Mrs. F Mitchell took over the lease of a basement flat in South Normanton in October 2000. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in South Normanton with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 collected annually. The lease termination date was on 27 January 2099. Given that there were 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.

South Normanton case:

In 2013 we were phoned by Mr and Mrs. P Watson who, having bought a one bedroom flat in South Normanton in April 2006. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparable homes in South Normanton with an extended lease were valued about £264,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 18 September 2079. Given that there were 53 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus costs.