Why you should commence your St Annes lease extension

Why you should start your St Annes lease extension today:

A St Annes leasehold property depreciates with the years remaining on the lease.

St Annes leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in St Annes will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in St Annes with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not loan monies with a short lease

Almost all mortgage companies insist on a lengthy amount of time left on a leasehold property before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be conscious that it is reasonable to assume that someone wanting to purchase your property in the future might well do, so in the event that they can't secure a mortgage, then the value of the property could suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are prepared to accept

What makes us experts in St Annes lease extensions?

Irrespective of whether you are a tenant or a freeholder in St Annes,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 experience and the close ties they enjoy with St Annes valuers.

St Annes Lease Extension Case Studies:

Ibrahim, St Annes, Lancashire

Last Autumn Ibrahim, came precariously near to the 80-year threshold with the lease on his garden apartment in St Annes. In buying his home 18 years ago, the length of the lease was of little significance. Luckily, he realised he needed to take action soon on a lease extension. Ibrahim was able to extend his lease just in the nick of time in January. Ibrahim and the landlord in the end agreed on the final figure of £5,000 . If he not met the deadline, the price would have increased by at least £975.

St Annes case:

Last month we were approach by Mr Ibrahim Bertrand , who was assigned a lease of a garden flat in St Annes in June 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar homes in St Annes with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed on 25 June 2104. Having 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.

St Annes case:

Dr Sam Williams bought a purpose-built apartment in St Annes in March 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Identical homes in St Annes with a long lease were worth £191,000. The mid-range ground rent payable was £65 collected per annum. The lease ended on 23 June 2084. Considering the 58 years left we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including fees.