Main reasons to commence your Rochdale lease extension

Top reasons for lease extension now:

Increase your lease and increase your Rochdale property value

There is no doubt about it a leasehold property in Rochdale is a wasting asset as a result of the diminishing lease term. If the residual term has, over 99 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Rochdale will qualify for this right; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.

Lending institutions may not lend with a short lease

Lenders are inclined not grant a mortgage on short residential leases. You most probably encounter problems where you wish to sell your flat in Rochdale if the remaining lease term is below the criteria set by most mortgage companies. Different mortgage companies have varying criteria but on the whole they are looking for a minimum remaining lease term of 65 years.

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

Using our service will provide you enhanced control over the value of your Rochdale leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Rochdale Lease Extension Case Studies:

Victoria, Rochdale, Greater Manchester,

Subsequent to lengthy discussions with the freeholder of her studio apartment in Rochdale, Victoria initiated the lease extension process as the 80 year threshold was quickly nearing. The lease extension was concluded in May 2008. The landlord’s fees were kept to an absolute minimum.

Rochdale case:

In 2011 we were phoned by Mr and Mrs. H Howard who, having took over the lease of a first floor flat in Rochdale in May 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Rochdale with a long lease were valued about £171,800. The mid-range ground rent payable was £55 invoiced monthly. The lease expiry date was on 13 September 2076. Given that there were 50 years unexpired we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.

Rochdale case:

Last Autumn we were approach by Mrs Ella Young , who acquired a one bedroom flat in Rochdale in October 2005. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical properties in Rochdale with a long lease were valued around £280,000. The average ground rent payable was £45 billed yearly. The lease lapsed in 2096. Having 70 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.