Why you should commence your West Kirby lease extension

Top reasons for lease extension now:

Increase your lease and increase your West Kirby property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in West Kirby. Clearly, the term of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in West Kirby have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful deliberation before putting off your West Kirby lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease

An extended lease is almost the same value as a freehold

Leasehold properties in West Kirby with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not lend on a short lease

The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined 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 West Kirby lease extension solicitors or enfranchisement solicitors

Lease extensions in West Kirby can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with West Kirby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

West Kirby Lease Extension Example Cases:

Cameron, West Kirby, Merseyside,

Cameron was the the leasehold owner of a studio flat in West Kirby on the market with a lease of just over 72 years left. Cameron informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Cameron to exercise his statutory right. Cameron procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.

West Kirby case:

In 2009 we were approached by Mr and Mrs. H Díaz who, having purchased a studio flat in West Kirby in November 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable premises in West Kirby with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease elapsed in 2081. Taking into account 55 years remaining we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including professional charges.

West Kirby case:

In 2010 we were approached by Ms H Petit who, having moved into a first floor apartment in West Kirby in August 2008. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative flats in West Kirby with a long lease were worth £295,000. The average amount of ground rent was £50 billed yearly. The lease terminated on 16 March 2101. Having 75 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.