Why you should start your Tarporley lease extension

Why you should commence your Tarporley lease extension today:

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

With a residential leasehold property in Tarporley, you are actually buying a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Tarporley with a lease nearing 81 years remaining should seriously think of extending it without delay. Once a lease has under 80 years left, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.

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

It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may not lend on a short lease

The trend since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

The conveyancers that we work with undertake Tarporley 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 lawyer we work with provide it.

Tarporley Lease Extension Case Studies:

Joseph, Tarporley, Cheshire

Half a year ago Joseph, started to get near to the 80-year threshold with the lease on his studio flat in Tarporley. Having bought his property 18 years ago, the length of the lease was of minimal significance. Luckily, he became aware that he needed to take action soon on a lease extension. Joseph extended the lease just under the wire in July. Joseph and the freeholder in the end settled on an amount of £6,000 . If the lease had slipped below 80 years, the sum would have increased by at least £1,100.

Tarporley case:

Last Autumn we were called by Mr and Mrs. O Jones , who completed a one bedroom apartment in Tarporley in January 2001. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar homes in Tarporley with an extended lease were in the region of £210,000. The average amount of ground rent was £50 collected monthly. The lease lapsed in 2106. Having 80 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.

Tarporley case:

Last July we were called by Mr and Mrs. I Jones , who acquired a recently refurbished apartment in Tarporley in January 2004. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative homes in Tarporley with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 collected quarterly. The lease expiry date was in 2095. Considering the 69 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.