Top reasons for Farnham Royal lease extension

Top reasons for lease extension now:

A Farnham Royal leasehold property 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 your lease becomes more expensive. Most 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 must see if your lease has between seventy and 90 years remaining. There are good reasons why a Farnham Royal flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay

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

Leasehold properties in Farnham Royal with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not grant a mortgage with a short lease

Banks and building societies do not like short residential leases. You are likely to experience problems if you wish to sell your flat in Farnham Royal if the remaining term of your lease is under the criteria set by the majority of banks and building societies. Different lenders have varying criteria but generally they are looking for an unexpired term of at least seventy years.

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

The lawyers that we work with handle Farnham Royal 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.

Farnham Royal Lease Extension Case Studies:

Tyler, Farnham Royal, Buckinghamshire

In recent months Tyler, came seriously near to the 80-year mark with the lease on his studio flat in Farnham Royal. In buying his flat 19 years previously, the lease term was of little interest. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Tyler was able to extend his lease just in the nick of time in April. Tyler and the landlord who owned the flat above ultimately agreed on the final figure of £6,000 . If he not met the deadline, the amount would have become more costly by at least £1,125.

Farnham Royal case:

Mr and Mrs. Y Rogers owned a newly refurbished apartment in Farnham Royal in January 2010. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparative premises in Farnham Royal with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended on 24 May 2094. Given that there were 68 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.

Farnham Royal case:

Last year we were contacted by Mr Jacob Fournier , who took over the lease of a first floor flat in Farnham Royal in January 2009. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical flats in Farnham Royal with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 invoiced annually. The lease terminated in 2105. Given that there were 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.