Top reasons for Cheltenham lease extension

Why you should commence your Cheltenham lease extension today:

Increase your lease and increase your Cheltenham property value

Cheltenham leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Cheltenham will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Cheltenham with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to finance a property on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

Lease extensions in Cheltenham can be a difficult process. We recommend you obtain 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 in-depth market knowledge dealing with Cheltenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Cheltenham Lease Extension Case Studies:

Amy, Cheltenham, Gloucestershire,

Trailing unsuccessful correspondence with the freeholder of her two bedroom apartment in Cheltenham, Amy started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension completed in October 2006. The landlord’s fees were kept to an absolute minimum.

Cheltenham case:

Last year we were phoned by Mr and Mrs. A García , who was assigned a lease of a one bedroom flat in Cheltenham in May 2011. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparative flats in Cheltenham with a long lease were valued about £280,000. The average ground rent payable was £55 invoiced yearly. The lease ran out in 2103. Having 77 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.

Cheltenham case:

Dr C Murphy owned a one bedroom apartment in Cheltenham in January 2012. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar flats in Cheltenham with an extended lease were in the region of £183,600. The average ground rent payable was £65 invoiced quarterly. The lease ended on 17 August 2083. Having 57 years remaining we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.