Top reasons for Farnham Royal lease extension

Why you should start your Farnham Royal lease extension today:

A Farnham Royal lease depreciates with the years remaining on the lease.

Farnham Royal 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 the lease gets more expensive. The majority of owners of residential leasehold property in Farnham Royal enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Farnham Royal you should see if your lease has between seventy and 90 years remaining. There are good reasons why a Farnham Royal leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay

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

It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions will not issue a mortgage with a short lease

Mortgage companies are really restricting their approach as regards to homes in Farnham Royal with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus limiting the number of prospective purchasers.

Why use us for your lease extension in Farnham Royal?

Regardless of whether you are a tenant or a freeholder in Farnham Royal,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Farnham Royal valuers.

Farnham Royal Lease Extension Case Summaries:

Arthur, Farnham Royal, Buckinghamshire

Half a year ago Arthur, came very near to the 80-year threshold with the lease on his leasehold apartment in Farnham Royal. In buying his home 18 years previously, the unexpired term was of little importance. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Arthur arranged for a lease extension just under the wire in July. Arthur and the freeholder via the managing agents eventually agreed on the final figure of £6,000 . If the lease had descended to less than eighty years, the amount would have increased by a minimum £1,100.

Farnham Royal case:

In 2013 we were phoned by Mr and Mrs. O Davis who, having completed a basement flat in Farnham Royal in January 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Farnham Royal with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced yearly. The lease end date was on 18 November 2102. Considering the 76 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.

Farnham Royal case:

In 2010 we were approached by Mr and Mrs. A Hernández who, having acquired a newly refurbished flat in Farnham Royal in August 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Identical premises in Farnham Royal with a long lease were worth £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease termination date was on 7 August 2082. Given that there were 56 years unexpired we approximated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus expenses.