Why you should commence your Alcester lease extension

Why you should commence your Alcester lease extension today:

Increase your lease and increase your Alcester property value

When it comes to domestic leasehold premises in Alcester, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Alcester with a lease nearing 81 years left should seriously consider extending it sooner rather than later. When a lease has less than 80 years outstanding, under the relevant statute the landlord can calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold properties in Alcester with over 100 years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

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

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This may cause difficulties as and when you need to sell or refinance your property as it will be practically unmortgageable. Even though you might not have an immediate desire to sell but when you do your buyer will need to hold off for two years before being able to start the legal procedures for a lease extension.

What makes us experts in Alcester lease extensions?

Irrespective of whether you are a tenant or a freeholder in Alcester,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alcester valuers.

Alcester Lease Extension Case Studies:

Niamh, Alcester, Warwickshire,

Off the back of unsuccessful negotiations with the landlord of her purpose-built flat in Alcester, Niamh started the lease extension process just as her lease was approaching the all-important 80-year mark. The lease extension was finalised in November 2011. The landlord’s fees were kept to an absolute minimum.

Alcester case:

In 2009 we were e-mailed by Ms Maisie Ricardo who, having took over the lease of a one bedroom flat in Alcester in August 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Alcester with an extended lease were worth £290,000. The average amount of ground rent was £60 collected annually. The lease came to a finish on 7 March 2106. Having 80 years outstanding we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.

Alcester case:

Mr and Mrs. C White completed a recently refurbished apartment in Alcester in March 2003. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar flats in Alcester with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease lapsed on 20 November 2086. Given that there were 60 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including expenses.