Top reasons for Cheltenham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Cheltenham property value

Cheltenham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Cheltenham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Cheltenham you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 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 has roughly the same value as a freehold

Leasehold residencies in Cheltenham with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions may decide not to issue a mortgage on a short lease

Most high street banks are tightening their criteria and many now require flats to have at least 60 if not 70 years left at the expiry of the mortgage. Given that plenty of flats in Cheltenham were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

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

Using our service gives you better control over the value of your Cheltenham 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.

Cheltenham Lease Extension Example Cases:

Amy, Cheltenham, Gloucestershire,

In the wake of 6 months of protracted discussions with the landlord of her garden flat in Cheltenham, Amy commenced the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was finalised in September 2006. The landlord’s charges were restricted to slightly above 450 pounds.

Cheltenham case:

Last Spring we were approach by Dr I Torres , who acquired a first floor flat in Cheltenham in January 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Cheltenham with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 collected per annum. The lease finished in 2099. Taking into account 73 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.

Cheltenham case:

In 2011 we were called by Dr E Lewis who, having purchased a ground floor apartment in Cheltenham in August 2006. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparable premises in Cheltenham with 100 year plus lease were worth £264,000. The average ground rent payable was £60 billed yearly. The lease came to a finish in 2079. Taking into account 53 years left we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of fees.