Main reasons to commence your Westhoughton lease extension

Main reasons to start your Westhoughton lease extension today:

Increase your lease and increase your Westhoughton property value

The re-sale value of a leasehold property in Westhoughton is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised prior to the 80 year mark. Leasehold Reform legislation entitles Westhoughton qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not lend with a short lease

Lenders are inclined not lend on short residential leases. You are likely to encounter difficulties where you need to sell your flat in Westhoughton if the remaining lease term is less than the criteria set by the majority of mortgage companies. Different mortgage companies have different criteria but generally they are looking for a minimum remaining lease term of 65 years.

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

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

Westhoughton Lease Extension Case Studies:

Rebecca, Westhoughton, Greater Manchester,

Trailing protracted correspondence with the landlord of her one bedroom flat in Westhoughton, Rebecca initiated the lease extension process as the eighty year threshold was rapidly approaching. The legal work completed in April 2013. The freeholder’s costs were kept to an absolute minimum.

Westhoughton case:

Last Winter we were phoned by Mr J Norbert , who took over the lease of a one bedroom flat in Westhoughton in November 1996. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparable homes in Westhoughton with a long lease were valued around £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease end date was on 21 November 2098. Considering the 72 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.

Westhoughton case:

Last Spring we were contacted by Dr F Bell , who moved into a studio flat in Westhoughton in August 2011. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Westhoughton with a long lease were in the region of £256,600. The average amount of ground rent was £60 invoiced yearly. The lease finished on 1 May 2078. Taking into account 52 years outstanding we approximated the compensation to the landlord to extend the lease to be within £41,800 and £48,400 not including fees.