Why you should start your March lease extension

Why you should commence your March lease extension today:

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

March leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most March tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in March you must see if your lease has between 70 and 90 years left. There are good reasons why a March flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay

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

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.

Lenders will not finance a property on a short lease

Most high street banks are making their criteria more stringent and many now want flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Considering many flats in March were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

What makes us experts in March lease extensions?

Retaining our service gives you better control over the value of your March leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

March Lease Extension Case Studies:

Samuel, March, Cambridgeshire

Half a year ago Samuel, started to get close to the eighty-year threshold with the lease on his ground floor apartment in March. Having purchased his property two decades ago, the unexpired term was of minimal bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Samuel extended the lease just ahead of time last January. Samuel and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If the lease had slipped below 80 years, the price would have increased by at least £875.

March case:

Last Summer we were called by Mr and Mrs. P Brown , who bought a basement flat in March in September 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in March with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease concluded in 2100. Taking into account 74 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.

March case:

Ms Jade Bennett was assigned a lease of a newly refurbished flat in March in January 1999. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in March with a long lease were valued about £243,000. The average ground rent payable was £65 invoiced monthly. The lease concluded on 14 February 2089. Taking into account 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of legals.