Top reasons for Ashbourne lease extension

Top reasons for lease extension now:

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

Ashbourne leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Ashbourne enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Ashbourne you really ought to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

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

Lending institutions have specific criteria when lending funds secured on leasehold property. Many will simply refrain from lending at all once an unexpired lease term drops below a specified unexpired lease term. Many Lending institutions will not regard property with a remaining below seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are wanting to refinance your Ashbourne home.

What makes us experts in Ashbourne lease extensions?

Lease extensions in Ashbourne can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ashbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Ashbourne Lease Extension Case Studies:

Dexter, Ashbourne, Derbyshire,

Dexter owned a conversion flat in Ashbourne being marketed with a lease of a few days over 61 years left. Dexter on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Ashbourne case:

Mrs Georgina Nelson was assigned a lease of a purpose-built apartment in Ashbourne in May 2007. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable homes in Ashbourne with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 collected annually. The lease finished on 10 November 2096. Taking into account 70 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.

Ashbourne case:

Mrs D Jackson acquired a first floor flat in Ashbourne in November 2004. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical premises in Ashbourne with an extended lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed annually. The lease lapsed in 2085. Considering the 59 years as a residual term we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus costs.