Why you should commence your 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.

Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Farnham Royal. Clearly, the length of lease left reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Farnham Royal have the right to extend the lease for a further 90 years under statute. You should give due consideration before putting off your Farnham Royal lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease

Farnham Royal property with a lease extension is almost the same value as a freehold

Leasehold properties in Farnham Royal with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to issue a mortgage with a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Using our service will provide you increased control over the value of your Farnham Royal leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Farnham Royal Lease Extension Case Studies:

Elijah, Farnham Royal, Buckinghamshire,

Elijah owned a studio apartment in Farnham Royal being sold with a lease of a little over 61 years remaining. Elijah on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.

Farnham Royal case:

In 2013 we were contacted by Dr W Díaz who, having completed a basement flat in Farnham Royal in November 2009. The question was if we could approximate the price could be to prolong the lease by 90 years. Identical residencies in Farnham Royal with a long lease were worth £200,800. The average amount of ground rent was £65 billed monthly. The lease elapsed on 1 October 2086. Given that there were 60 years outstanding we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including costs.

Farnham Royal case:

Last Summer we were called by Dr Ali Sánchez , who acquired a garden flat in Farnham Royal in June 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable residencies in Farnham Royal with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded in 2097. Taking into account 71 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.