Main reasons to commence your Malpas lease extension

Main reasons to commence your Malpas lease extension today:

Increase your lease and increase your Malpas property value

With a long leasehold property in Malpas, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Leasehold owners in Malpas with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years remaining, under the current Act the freeholder can calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not issue a mortgage with a short lease

Most banks and building societies will not grant a mortgage on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Malpas property being difficult to sell or remortgage.

Why use us for your lease extension in Malpas?

Regardless of whether you are a tenant or a landlord in Malpas,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Malpas valuers.

Malpas Lease Extension Case Studies:

Seth, Malpas, Cheshire

Two years ago Seth, started to get close to the 80-year mark with the lease on his first floor flat in Malpas. In buying his home twenty years previously, the unexpired term was of minimal relevance. by good luck, he realised he needed to take action soon on Extending the lease. Seth was able to extend his lease just under the wire last August. Seth and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had slid below eighty years, the figure would have become more costly by a minimum £850.

Malpas case:

In 2014 we were approached by Ms Melissa Dupont who, having bought a ground floor apartment in Malpas in October 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative homes in Malpas with 100 year plus lease were worth £245,000. The average ground rent payable was £50 invoiced monthly. The lease expired on 21 September 2094. Considering the 68 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.

Malpas case:

Last month we were e-mailed by Mr and Mrs. L Thompson , who moved into a one bedroom apartment in Malpas in October 2002. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Malpas with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 collected yearly. The lease finished on 25 February 2105. Given that there were 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.