Main reasons to commence your Atherstone lease extension

Main reasons to commence your Atherstone lease extension today:

Increase your lease and increase your Atherstone property value

Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Atherstone. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Atherstone have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Atherstone lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold residencies in Atherstone with in excess of 100 years remaining 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 purchasing the freehold unless savings on ground rent and estate charges justify it.

Lenders will not lend on a short lease

The propensity since 2008 has been for banks 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 minimum number of years remaining under the lease required by banks has increased. Historically banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Atherstone?

Lease extensions in Atherstone can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Atherstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Atherstone Lease Extension Case Summaries:

Zoe, Atherstone, Warwickshire,

In the wake of 6 months of lengthy negotiations with the freeholder of her purpose-built apartment in Atherstone, Zoe commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work completed in March 2005. The freeholder’s costs were kept to an absolute minimum.

Atherstone case:

In 2013 we were e-mailed by Ms A Evans who, having was assigned a lease of a first floor apartment in Atherstone in May 2005. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Atherstone with an extended lease were worth £280,000. The average ground rent payable was £55 collected yearly. The lease termination date was in 2104. Having 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.

Atherstone case:

In 2013 we were phoned by Mr Tyler Bonnet who, having moved into a garden flat in Atherstone in May 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Atherstone with a long lease were valued around £191,000. The average amount of ground rent was £65 billed yearly. The lease ran out in 2084. Taking into account 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 not including professional charges.