Why you should start your Barrow In Furness lease extension

Top reasons for lease extension now:

A Barrow In Furness leasehold property depreciates with the years remaining on the lease.

Barrow In Furness leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Barrow In Furness residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Barrow In Furness you must see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Barrow In Furness leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay

Barrow In Furness property with a lease extension has roughly the same value as a freehold

Leasehold properties in Barrow In Furness with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lenders may decide not to issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This will cause difficulties once you come to sell or refinance your flat as it will be practically unmortgageable. You might not have an immediate plan to sell but when you do your buyer will need to hold off for two years before they can exercise the right to a a lease extension.

Why use us for your lease extension in Barrow In Furness?

The conveyancers that we work with procure Barrow In Furness 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.

Barrow In Furness Lease Extension Case Studies:

Lewis, Barrow In Furness, Cumbria

Last Spring Lewis, started to get close to the eighty-year mark with the lease on his two bedroom flat in Barrow In Furness. Having purchased his flat twenty years previously, the lease term was of little relevance. Fortunately, he recognised he needed to take action soon on Extending the lease. Lewis was able to extend his lease just under the wire in January. Lewis and the freeholder ultimately agreed on sum of £6,000 . If the lease had slipped below 80 years, the figure would have increased by at least £1,150.

Barrow In Furness case:

Last Christmas we were e-mailed by Mrs P Clarke , who purchased a one bedroom apartment in Barrow In Furness in November 1997. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparative premises in Barrow In Furness with an extended lease were valued around £227,800. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish on 6 October 2090. Taking into account 65 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.

Barrow In Furness case:

Ms Sian Bertrand bought a purpose-built flat in Barrow In Furness in August 2002. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative flats in Barrow In Furness with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected yearly. The lease finished in 2101. Taking into account 76 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.