Main reasons to commence your March lease extension

Main reasons to start your March lease extension today:

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

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in March have the right to extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your March lease extension. Shelving that expense now simply escalates the amount you will eventually be required to pay to extend the lease.

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

Leasehold properties in March with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders will not issue a mortgage with a short lease

Lenders are making their criteria more stringent and a meaningful number now expect flats to have at least 60 if not 70 years remaining once the mortgage has expired. Given that many flats in March were built in the fifties, sixties and seventies as a result many now require lease extensions if they wish to get a mortgage.

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

Irrespective of whether you are a tenant or a freeholder in March,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with March valuers.

March Lease Extension Example Cases:

Kayleigh, March, Cambridgeshire,

In the wake of eight months of lengthy discussions with the landlord of her garden flat in March, Kayleigh initiated the lease extension process as the 80 year mark was swiftly coming. The lease extension was concluded in April 2012. The freeholder’s charges were restricted to slightly above 450 GBP.

March case:

Last Autumn we were e-mailed by Dr Madeleine Leroy , who moved into a newly refurbished flat in March in July 2008. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar premises in March with 100 year plus lease were valued about £240,600. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded in 2088. Given that there were 62 years unexpired we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.

March case:

Last month we were called by Mr M Taylor , who moved into a one bedroom flat in March in August 2001. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical residencies in March with an extended lease were worth £174,200. The average amount of ground rent was £55 collected every twelve months. The lease concluded in 2077. Given that there were 51 years unexpired we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.