Why you should start your Arley lease extension

Why you should start your Arley lease extension today:

Increase your lease and increase your Arley property value

With a long leasehold property in Arley, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Arley with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once the lease term has under eighty years remaining, under the relevant statute the freeholder can calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders will not lend with a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This will cause difficulties when you wish to dispose of or remortgage your property as it will be effectively unmortgageable. You might have no immediate plan to sell but when you do your buyer will have to hold off for a couple of years before being able to exercise the right to a an extension to the lease.

What makes us experts in Arley lease extensions?

Engaging our service gives you increased control over the value of your Arley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Arley Lease Extension Example Cases:

Phoebe, Arley, Warwickshire,

In the wake of eight months of unsuccessful correspondence with the freeholder of her first floor flat in Arley, Phoebe started the lease extension process as the 80 year mark was fast coming. The transaction was finalised in January 2006. The landlord’s charges were negotiated to slightly above 600 pounds.

Arley case:

Last month we were approach by Mr and Mrs. K King , who owned a recently refurbished apartment in Arley in September 2004. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable premises in Arley with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected quarterly. The lease came to a finish on 11 September 2106. Having 80 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.

Arley case:

In 2012 we were called by Ms Alexandra Sharif who, having completed a garden apartment in Arley in September 1996. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical flats in Arley with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 billed yearly. The lease ended on 15 May 2086. Taking into account 60 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus professional charges.