Top reasons for Totterdown lease extension

Why you should commence your Totterdown lease extension today:

A Totterdown lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Totterdown depends on how long the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised well before the 80 year cut off point. Leasehold Reform legislation entitles Totterdown qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Totterdown with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get concerned at around 75 years. This may be problematic when you come to market or refinance your property as it will be effectively unmortgageable. Even though you might not have an imminent intention to sell but when you do your purchaser will need to wait two years before they can start the legal procedures for an extension to the lease.

What makes us experts in Totterdown lease extensions?

The lawyers that we work with handle Totterdown 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.

Totterdown Lease Extension Case Studies:

Danielle, Totterdown, Bristol,

Trailing unsuccessful negotiations with the freeholder of her purpose-built apartment in Totterdown, Danielle commenced the lease extension process as the 80 year threshold was rapidly coming. The transaction was concluded in November 2010. The landlord’s charges were negotiated to approximately 700 GBP.

Totterdown case:

Mr and Mrs. D Rogers was assigned a lease of a one bedroom flat in Totterdown in July 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar premises in Totterdown with a long lease were valued around £183,600. The average amount of ground rent was £65 billed monthly. The lease elapsed on 22 September 2083. Having 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.

Totterdown case:

In 2013 we were approached by Dr Paige Ramírez who, having moved into a one bedroom apartment in Totterdown in July 2006. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Similar homes in Totterdown with an extended lease were worth £245,000. The average ground rent payable was £50 billed monthly. The lease finished in 2094. Considering the 68 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.