Why you should commence your Thorpe Astley lease extension

Why you should commence your Thorpe Astley lease extension today:

A Thorpe Astley leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in Thorpe Astley, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Thorpe Astley with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has fewer than 80 years remaining, under the relevant Act the freeholder can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders may not finance a property with a short lease

Mortgage companies are really restricting their approach as regards to properties in Thorpe Astley with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your only options would be to find a cash buyer, or try your luck at auction thus restricting your market.

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

Regardless of whether you are a tenant or a landlord in Thorpe Astley,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 in-depth market knowledge and the close ties they enjoy with Thorpe Astley valuers.

Thorpe Astley Lease Extension Case Summaries:

Anna, Thorpe Astley, Leicestershire,

Off the back of protracted discussions with the freeholder of her garden apartment in Thorpe Astley, Anna commenced the lease extension process as the 80 year mark was quickly advancing. The transaction was finalised in July 2013. The landlord’s charges were restricted to a tad over 600 GBP.

Thorpe Astley case:

In 2010 we were contacted by Mr and Mrs. L Carter who, having acquired a studio apartment in Thorpe Astley in June 2005. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Thorpe Astley with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced yearly. The lease terminated on 13 February 2099. Having 73 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.

Thorpe Astley case:

Last Winter we were contacted by Ms E Hall , who moved into a basement apartment in Thorpe Astley in July 1998. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar residencies in Thorpe Astley with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out on 27 February 2079. Given that there were 53 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of legals.