Main reasons to commence your Prescot lease extension

Main reasons to commence your Prescot lease extension today:

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

The only way is down when it comes to Prescot lease terms. Prescot properties that have a lease term fewer than eighty years will drop in value even faster, and the cost to extend your lease will go up.

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

Leasehold properties in Prescot with more than 100 years unexpired 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders may not grant a mortgage with a short lease

Mortgage companies are really restricting their approach as regards to homes in Prescot with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus reducing your market.

What makes us experts in Prescot lease extensions?

The lawyers that we work with undertake Prescot 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 conveyancer we work with provide it.

Prescot Lease Extension Case Summaries:

Charlotte, Prescot, Merseyside,

Off the back of protracted correspondence with the freeholder of her studio flat in Prescot, Charlotte started the lease extension process as the 80 year mark was fast approaching. The transaction completed in July 2006. The freeholder’s charges were kept to an absolute minimum.

Prescot case:

Dr Rachael Bertrand acquired a garden flat in Prescot in April 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Prescot with a long lease were worth £200,000. The average amount of ground rent was £50 invoiced annually. The lease finished in 2103. Taking into account 77 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.

Prescot case:

In 2009 we were called by Dr Leo Nelson who, having completed a basement apartment in Prescot in August 1999. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Prescot with a long lease were worth £260,200. The mid-range ground rent payable was £65 collected quarterly. The lease ended in 2092. Considering the 66 years left we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of expenses.