Why you should start your Totterdown lease extension

Main reasons to commence your Totterdown lease extension today:

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

The nearer a residential lease in Totterdown nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Totterdown will qualify for this right; however a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to grant a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past banks would lend on a lease with 25 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 use a minimum term of 75 years as a prerequisite.

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

The conveyancing solicitors 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 conveyancer we work with provide it.

Totterdown Lease Extension Example Cases:

Alicia, Totterdown, Bristol,

Following unsuccessful correspondence with the landlord of her ground floor flat in Totterdown, Alicia started the lease extension process as the 80 year deadline was rapidly nearing. The lease extension was finalised in May 2015. The freeholder’s charges were restricted to about 550 GBP.

Totterdown case:

Mr and Mrs. D Rodríguez bought a studio flat in Totterdown in July 2011. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Totterdown with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded in 2095. Given that there were 69 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.

Totterdown case:

In 2011 we were phoned by Mr and Mrs. H Thompson who, having bought a purpose-built apartment in Totterdown in January 2004. The question was if we could estimate the price could be to prolong the lease by 90 years. Comparative premises in Totterdown with an extended lease were worth £290,000. The mid-range ground rent payable was £55 billed annually. The lease ended in 2106. Considering the 80 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.