Top reasons for Tyldesley lease extension

Why you should commence your Tyldesley lease extension today:

Increase your lease and increase your Tyldesley property value

Tyldesley leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Tyldesley will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lenders may not grant a mortgage with a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Regardless of whether you are a tenant or a freeholder in Tyldesley,the lease extension lawyers 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 Tyldesley valuers.

Tyldesley Lease Extension Case Studies:

Elijah, Tyldesley, Greater Manchester,

Elijah owned a high value flat in Tyldesley being sold with a lease of a few days over 72 years left. Elijah informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.

Tyldesley case:

Last Autumn we were phoned by Ms B Bonnet , who completed a garden apartment in Tyldesley in April 2002. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparable properties in Tyldesley with a long lease were valued about £267,600. The average ground rent payable was £65 billed every twelve months. The lease end date was in 2093. Having 67 years unexpired we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus costs.

Tyldesley case:

Last July we were approach by Dr N Richardson , who bought a garden flat in Tyldesley in September 2006. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Tyldesley with an extended lease were in the region of £201,200. The mid-range amount of ground rent was £55 collected per annum. The lease end date was on 23 January 2082. Taking into account 56 years outstanding we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.