Main reasons to start your Whalley Range lease extension

Why you should commence your Whalley Range lease extension today:

A Whalley Range leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Whalley Range is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed prior to the 80 year mark. Statute entitles Whalley Range qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders will not loan monies with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Whalley Range lease extensions?

Lease extensions in Whalley Range can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.

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 a wealth of experience dealing with Whalley Range lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Whalley Range Lease Extension Example Cases:

Amelia, Whalley Range, Manchester,

After lengthy discussions with the freeholder of her garden flat in Whalley Range, Amelia commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension completed in January 2013. The freeholder’s costs were kept to an absolute minimum.

Whalley Range case:

Last month we were contacted by Mr K Phillips , who completed a one bedroom flat in Whalley Range in September 1997. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar residencies in Whalley Range with an extended lease were valued about £270,000. The average amount of ground rent was £55 billed yearly. The lease concluded in 2100. Considering the 74 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.

Whalley Range case:

Last year we were approach by Dr Noah Moreau , who was assigned a lease of a purpose-built flat in Whalley Range in October 1999. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative flats in Whalley Range with an extended lease were valued around £166,400. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2080. Taking into account 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.