Main reasons to commence your Stalybridge lease extension

Why you should commence your Stalybridge lease extension today:

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

With a long leasehold premises in Stalybridge, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Anyone in Stalybridge with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has less than eighty years remaining, under the current statute the freeholder can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.

Stalybridge property with a lease extension is almost the same value as a freehold

Leasehold residencies in Stalybridge with in excess of one hundred years remaining 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may not finance a property on a short lease

Lenders are really restricting their approach as regards to properties in Stalybridge with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus narrowing your market.

What makes us experts in Stalybridge lease extensions?

The lawyers that we work with procure Stalybridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Stalybridge Lease Extension Case Studies:

Tia, Stalybridge, Greater Manchester,

After protracted discussions with the freeholder of her studio flat in Stalybridge, Tia initiated the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was concluded in April 2013. The landlord’s costs were kept to an absolute minimum.

Stalybridge case:

Dr O Díaz was assigned a lease of a basement apartment in Stalybridge in June 2004. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable premises in Stalybridge with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced yearly. The lease expired in 2096. Taking into account 70 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.

Stalybridge case:

Dr William Ricardo acquired a garden flat in Stalybridge in March 2003. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable homes in Stalybridge with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected annually. The lease expired in 2076. Having 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of costs.