Top reasons for Trafford lease extension

Top reasons for lease extension now:

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

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Trafford. Inevitably, the term of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Trafford have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your Trafford lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease

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

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lenders will not finance a property on a short lease

The propensity since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Trafford?

Engaging our service gives you enhanced control over the value of your Trafford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Trafford Lease Extension Case Studies:

Oliver, Trafford, Greater Manchester,

Oliver owned a studio apartment in Trafford on the market with a lease of a few days over fifty eight years remaining. Oliver informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.

Trafford case:

Last Christmas we were contacted by Dr E Collins , who took over the lease of a newly refurbished apartment in Trafford in January 1998. The question was if we could estimate the premium could be to prolong the lease by an additional years. Similar flats in Trafford with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 collected annually. The lease ran out on 7 September 2082. Taking into account 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of expenses.

Trafford case:

In 2009 we were phoned by Mr and Mrs. W Wilson who, having purchased a recently refurbished flat in Trafford in October 2001. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Trafford with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 collected quarterly. The lease expired on 10 May 2093. Taking into account 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus expenses.