Why you should commence your Cheltenham lease extension

Main reasons to start your Cheltenham lease extension today:

A Cheltenham lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cheltenham. Inevitably, the length of lease left reduces as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Cheltenham have the right to extend the lease for an additional ninety years in accordance with legislation. Please give due consideration before putting off your Cheltenham lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease

Cheltenham property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Cheltenham with in excess of one hundred 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 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.

Banks and Building Societies may not finance a property on a short lease

Nearly all mortgage companies will not lend on a lease with under 70 years remaining - although this varies from lender to lender. A purchaser will undoubtedly find it difficult to obtain a mortgage and this could result in your Cheltenham property being difficult to sell or refinance.

What makes us experts in Cheltenham lease extensions?

Using our service gives you enhanced control over the value of your Cheltenham leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Cheltenham Lease Extension Example Cases:

Connor, Cheltenham, Gloucestershire,

Connor owned a conversion flat in Cheltenham on the market with a lease of a few days over sixty years left. Connor informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

Cheltenham case:

Last Spring we were approach by Dr Dexter Harris , who was assigned a lease of a one bedroom apartment in Cheltenham in July 1995. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparative residencies in Cheltenham with an extended lease were worth £246,800. The average ground rent payable was £60 billed yearly. The lease expired in 2076. Given that there were 50 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 not including legals.

Cheltenham case:

Mr Jayden Davies took over the lease of a one bedroom flat in Cheltenham in May 1999. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar flats in Cheltenham with a long lease were in the region of £208,200. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish in 2087. Given that there were 61 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus legals.