Why you should commence your Handforth lease extension

Top reasons for lease extension now:

A Handforth lease depreciates with the years remaining on the lease.

The value of Handforth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than eighty years

Handforth property with a lease extension is almost the same value as a freehold

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

Lending institutions may decide not to finance a property on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This may cause difficulties as and when you need to dispose of or refinance your property as it will be effectively unmortgageable. You might not have an imminent intention to sell but when you do your buyer will have to hold off for a couple of years before being able to exercise the right to a an extension to the lease.

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

The conveyancers that we work with procure Handforth 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.

Handforth Lease Extension Example Cases:

Jake, Handforth, Cheshire,

Jake owned a high value apartment in Handforth being sold with a lease of fraction over 59 years outstanding. Jake on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Jake to invoke his statutory right. Jake procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.

Handforth case:

In 2014 we were approached by Mr Logan Anderson who, having took over the lease of a studio flat in Handforth in January 2000. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Handforth with an extended lease were worth £213,600. The average amount of ground rent was £60 collected annually. The lease lapsed in 2083. Considering the 57 years remaining we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.

Handforth case:

In 2011 we were phoned by Dr T Lambert who, having acquired a newly refurbished apartment in Handforth in March 2005. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Similar flats in Handforth with an extended lease were valued about £200,000. The average ground rent payable was £50 billed annually. The lease end date was in 2103. Given that there were 77 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.