Top reasons for West Kirby lease extension

Why you should commence your West Kirby lease extension today:

A West Kirby leasehold property depreciates with the years remaining on the lease.

When it comes to long leasehold premises in West Kirby, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Residents in West Kirby with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has under 80 years outstanding, under the current Act the freeholder can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold premises in West Kirby with over one hundred years remaining 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 to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Lending institutions may not lend on a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies from lender to lender. A buyer will likely encounter difficulties to obtain a mortgage and this will result in your West Kirby property becoming difficult to dispose of or refinance.

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

The conveyancers that we work with procure West Kirby 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 conveyancing solicitor we work with provide it.

West Kirby Lease Extension Example Cases:

Louise, West Kirby, Merseyside,

Subsequent to unsuccessful negotiations with the freeholder of her studio flat in West Kirby, Louise commenced the lease extension process as the eighty year deadline was fast nearing. The lease extension was finalised in September 2009. The freeholder’s costs were restricted to below 550 GBP.

West Kirby case:

Last Christmas we were approach by Dr Harry Morris , who owned a garden apartment in West Kirby in November 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in West Kirby with an extended lease were worth £295,000. The average ground rent payable was £45 invoiced per annum. The lease ran out on 16 February 2100. Considering the 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.

West Kirby case:

In 2012 we were e-mailed by Mr Sebastian Mercier who, having moved into a recently refurbished apartment in West Kirby in April 2010. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable residencies in West Kirby with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 invoiced per annum. The lease elapsed on 13 May 2089. Having 63 years outstanding we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including fees.