Main reasons to commence your Highnam lease extension

Main reasons to commence your Highnam lease extension today:

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

Unfortunately that a Highnam residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Highnam property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Highnam will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.

An extended lease is almost the same value as a freehold

Leasehold properties in Highnam with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not grant a mortgage with a short lease

Mortgage companies are tightening their criteria and many now require flats to have at least 60 if not 70 years remaining at the expiry of the mortgage. Considering plenty of flats in Highnam were built in the fifties, sixties and seventies as a result many now need to be extended if they wish to obtain a mortgage.

What makes us experts in Highnam lease extensions?

Using our service will provide you increased control over the value of your Highnam leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Highnam Lease Extension Example Cases:

Abbie, Highnam, Gloucestershire,

Following lengthy discussions with the freeholder of her basement apartment in Highnam, Abbie started the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction completed in August 2007. The freeholder’s charges were kept to an absolute minimum.

Highnam case:

In 2009 we were e-mailed by Mr and Mrs. B Ali who, having took over the lease of a ground floor apartment in Highnam in October 2005. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Highnam with 100 year plus lease were valued about £240,600. The average amount of ground rent was £60 billed annually. The lease concluded in 2088. Having 62 years remaining we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.

Highnam case:

In 2011 we were called by Mrs N Bennett who, having completed a studio apartment in Highnam in November 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Highnam with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out on 15 July 2077. Given that there were 51 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.