Top reasons for Peak District lease extension

Top reasons for lease extension now:

Increase your lease and increase your Peak District property value

Peak District residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.

Peak District property with a lease extension has roughly the same value as a freehold

Leasehold premises in Peak District with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not finance a property with a short lease

Lending institutions have set criteria when loaning monies secured on leasehold homes. Many will simply refrain from lending at all once the remaining lease term slips lower than a certain unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than seventy years as adequate security. As well as impacting your ability to sell, it is also relevant where you are seeking to remortgage your Peak District home.

What makes us experts in Peak District lease extensions?

Irrespective of whether you are a tenant or a landlord in Peak District,the lease extension experts 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 Peak District valuers.

Peak District Lease Extension Example Cases:

Austin, Peak District, Derbyshire

Half a year ago Austin, started to get close to the 80-year mark with the lease on his first floor apartment in Peak District. Having bought his property 18 years ago, the length of the lease was of little interest. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Austin was able to extend his lease at the eleventh hour last January. Austin and the freeholder via the management company ultimately settled on sum of £6,000 . If he not met the deadline, the sum would have become more costly by at least £925.

Peak District case:

Mr and Mrs. T Scott was assigned a lease of a ground floor flat in Peak District in May 2010. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable properties in Peak District with a long lease were in the region of £166,400. The average ground rent payable was £60 billed quarterly. The lease came to a finish in 2080. Given that there were 54 years unexpired we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including fees.

Peak District case:

In 2009 we were contacted by Ms Megan Parker who, having bought a first floor flat in Peak District in May 2009. The question was if we could approximate the price would be to prolong the lease by 90 years. Comparative flats in Peak District with a long lease were valued around £232,800. The mid-range ground rent payable was £45 collected yearly. The lease concluded in 2091. Taking into account 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.