Main reasons to commence your Dursley lease extension

Why you should start your Dursley lease extension today:

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

The market value of Dursley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is less than eighty years

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions will not lend with a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Dursley lease extensions?

The conveyancers that we work with procure Dursley 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.

Dursley Lease Extension Example Cases:

Chelsea, Dursley, Gloucestershire,

Following lengthy negotiations with the freeholder of her basement flat in Dursley, Chelsea initiated the lease extension process as the eighty year threshold was quickly nearing. The lease extension was finalised in August 2007. The landlord’s fees were kept to an absolute minimum.

Dursley case:

Last Winter we were approach by Mrs E Smith , who owned a recently refurbished flat in Dursley in April 2011. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Dursley with a long lease were valued about £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease end date was in 2081. Taking into account 57 years unexpired we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.

Dursley case:

In 2014 we were e-mailed by Mrs Hollie Mercier who, having was assigned a lease of a one bedroom apartment in Dursley in July 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Dursley with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ended on 21 April 2092. Having 68 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.