Main reasons to commence your Axbridge lease extension

Top reasons for lease extension now:

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

The only way is down when it comes to Axbridge lease terms. Axbridge properties that have a lease term shorter than eighty years will reduce in value even faster, and the cost of extending your lease will increase.

An extended lease is almost the same value as a freehold

Leasehold premises in Axbridge with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

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

Lending institutions have specific criteria when lending funds secured on leasehold property. Some will simply not lend at all once the remaining lease term drops beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are wanting to refinance your Axbridge home.

Why use us for your lease extension in Axbridge?

Irrespective of whether you are a tenant or a freeholder in Axbridge,the lease extension solicitors 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 Axbridge valuers.

Axbridge Lease Extension Example Cases:

Freddie, Axbridge, Somerset,

Freddie was the the leasehold owner of a high value apartment in Axbridge being sold with a lease of a little over 72 years left. Freddie on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.

Axbridge case:

Last Winter we were approach by Mr and Mrs. E Mitchell , who took over the lease of a ground floor apartment in Axbridge in September 2003. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable premises in Axbridge with an extended lease were in the region of £218,400. The average ground rent payable was £60 billed every twelve months. The lease came to a finish on 15 June 2085. Having 59 years outstanding we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of costs.

Axbridge case:

In 2013 we were approached by Mr and Mrs. G García who, having moved into a purpose-built apartment in Axbridge in June 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Axbridge with 100 year plus lease were valued around £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease concluded on 26 July 2105. Given that there were 79 years left we estimated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 plus costs.