Why you should start your Speke lease extension

Main reasons to start your Speke lease extension today:

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

Speke leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Speke will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Speke with over 100 years remaining on the lease are sometimes 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 service charges justify it.

Lenders will not issue a mortgage with a short lease

Lenders do not like short residential leases. You are likely to encounter problems if you wish to sell your flat in Speke if the unexpired term of your lease is below the criteria set by the majority of mortgage companies. Different mortgage companies have different criteria but on the whole theyrequire an unexpired term of at least seventy years.

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

Irrespective of whether you are a tenant or a landlord in Speke,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Speke valuers.

Speke Lease Extension Case Studies:

Hunter, Speke, Merseyside

Last year Hunter, came precariously close to the 80-year mark with the lease on his leasehold flat in Speke. Having bought his flat 19 years previously, the lease term was of little importance. Fortunately, he recognised he would soon be paying way over the odds for a lease extension. Hunter extended the lease at the eleventh hour last June. Hunter and the landlord ultimately agreed on sum of £5,000 . If he had missed the deadline, the amount would have become more costly by a minimum £1,050.

Speke case:

Last Christmas we were approach by Mr and Mrs. S Sánchez , who bought a purpose-built apartment in Speke in July 2011. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparative premises in Speke with an extended lease were worth £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease lapsed in 2098. Having 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.

Speke case:

In 2009 we were phoned by Dr Reuben Martinez who, having acquired a one bedroom apartment in Speke in October 2002. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable premises in Speke with a long lease were valued about £261,600. The average amount of ground rent was £60 invoiced yearly. The lease ended in 2078. Taking into account 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 not including professional charges.