Top reasons for Stokesley lease extension

Main reasons to commence your Stokesley lease extension today:

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

When it comes to domestic leasehold premises in Stokesley, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted 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 number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Leasehold owners in Stokesley with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When the lease term has under 80 years outstanding, under the current Act the landlord is entitled to calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.

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

Leasehold premises in Stokesley with in excess of 100 years unexpired 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not lend on a short lease

Mortgage lenders have specific criteria when loaning funds secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips below a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Stokesley home.

What makes us experts in Stokesley lease extensions?

Regardless of whether you are a tenant or a freeholder in Stokesley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stokesley valuers.

Stokesley Lease Extension Example Cases:

Gabriel, Stokesley, North Yorkshire,

Gabriel was the the leasehold owner of a conversion apartment in Stokesley being marketed with a lease of a few days over sixty years unexpired. Gabriel informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.

Stokesley case:

In 2014 we were approached by Dr P Thomas who, having acquired a basement apartment in Stokesley in September 2004. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Stokesley with an extended lease were valued about £166,400. The average ground rent payable was £60 billed quarterly. The lease ended on 1 March 2080. Taking into account 54 years outstanding we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.

Stokesley case:

Mrs K Bennett acquired a ground floor apartment in Stokesley in August 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Stokesley with an extended lease were valued about £227,800. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2091. Considering the 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.