Top reasons for Easthampstead lease extension

Main reasons to commence your Easthampstead lease extension today:

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

The value of Easthampstead leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than eighty years

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

Leasehold residencies in Easthampstead with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not grant a mortgage on a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Easthampstead lease extensions?

The lawyers that we work with undertake Easthampstead 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 lawyer we work with provide it.

Easthampstead Lease Extension Case Summaries:

David, Easthampstead, Berkshire,

David owned a 2 bedroom flat in Easthampstead on the market with a lease of just over 72 years unexpired. David informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were David to invoke his statutory right. David obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.

Easthampstead case:

Last month we were phoned by Mr and Mrs. D Parker , who moved into a ground floor flat in Easthampstead in May 2011. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable premises in Easthampstead with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 billed annually. The lease concluded in 2084. Given that there were 58 years left we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.

Easthampstead case:

Last Spring we were phoned by Mr Ethan Bennett , who owned a first floor apartment in Easthampstead in August 2007. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Identical homes in Easthampstead with a long lease were valued about £205,000. The average amount of ground rent was £50 collected per annum. The lease ran out on 19 October 2104. Having 78 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.