Main reasons to start your Goole lease extension

Main reasons to commence your Goole lease extension today:

A Goole leasehold property depreciates with the years remaining on the lease.

The closer a domestic lease in Goole nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Many flat owners in Goole will meet the qualifying criteria; that being said a lawyer will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders may not finance a property with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Goole lease extensions?

The lawyers that we work with procure Goole 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 lawyer we work with provide it.

Goole Lease Extension Case Studies:

Michael, Goole, East Yorkshire,

Michael owned a conversion flat in Goole on the market with a lease of a little over 72 years remaining. Michael on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Goole case:

In 2009 we were contacted by Mr H Wright who, having completed a newly refurbished flat in Goole in June 2008. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical flats in Goole with 100 year plus lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed every twelve months. The lease lapsed in 2090. Taking into account 64 years outstanding we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including expenses.

Goole case:

Last month we were approach by Dr Abigail Morgan , who took over the lease of a one bedroom apartment in Goole in May 1996. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Goole with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease ended on 16 August 2101. Considering the 75 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.