Main reasons to commence your West Derby lease extension

Main reasons to commence your West Derby lease extension today:

Increase your lease and increase your West Derby property value

The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in West Derby may extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your West Derby lease extension. Postponing the costs now simply escalates the amount you will eventually have to pay for a lease extension.

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

Leasehold residencies in West Derby with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not issue a mortgage with a short lease

Almost all banks and building societies require a lengthy amount of time left on any leasehold property before they will contemplate lending on it. Regardless of whether you need a mortgage, you should bear in mind that it is reasonable to assume that someone wishing to buy your property in the future might well do, so in the event that they can't get a mortgage, then the market price of your property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

Using our service will provide you enhanced control over the value of your West Derby leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

West Derby Lease Extension Case Summaries:

Henry, West Derby, Merseyside,

Henry owned a studio flat in West Derby being marketed with a lease of a little over 61 years remaining. Henry informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and secured satisfactory deal informally and readily saleable.

West Derby case:

Mr G White purchased a basement apartment in West Derby in October 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative properties in West Derby with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease termination date was in 2099. Considering the 73 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.

West Derby case:

In 2010 we were e-mailed by Mr G Smith who, having purchased a one bedroom apartment in West Derby in July 2006. The question was if we could estimate the price could be to extend the lease by 90 years. Comparable premises in West Derby with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 invoiced monthly. The lease ran out in 2088. Given that there were 62 years outstanding we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including professional charges.