Why you should commence your Gerrards Cross lease extension

Top reasons for lease extension now:

Increase your lease and increase your Gerrards Cross property value

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Gerrards Cross. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Gerrards Cross have the legal entitlement to extend the lease for an additional ninety years under legislation. Do give careful deliberation before delaying your Gerrards Cross lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension

An extended lease is almost the same value as a freehold

Leasehold premises in Gerrards Cross with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders will not grant a mortgage on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Gerrards Cross lease extension solicitors or enfranchisement solicitors

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

Gerrards Cross Lease Extension Case Studies:

Adam, Gerrards Cross, Buckinghamshire,

Adam was the the leasehold proprietor of a high value apartment in Gerrards Cross being sold with a lease of fraction over 59 years unexpired. Adam informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.

Gerrards Cross case:

Mr and Mrs. J Collins completed a one bedroom flat in Gerrards Cross in June 1998. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Gerrards Cross with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2086. Given that there were 60 years remaining we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus expenses.