Top reasons for Banbury lease extension

Top reasons for lease extension now:

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

Chances are that if you own a flat in Banbury you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold properties in Banbury with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to loan monies with a short lease

Nearly all banks and building societies require a lengthy amount of time left on any leasehold residence before they will consider lending on it. Regardless of whether you need a mortgage, you should be aware that it is reasonable to assume that someone wanting to purchase your property in the future might well do, so where they are unable to obtain a mortgage, then the market price of the property could be adversely impacted. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

Engaging our service will provide you increased control over the value of your Banbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Banbury Lease Extension Example Cases:

Nathan, Banbury, Oxfordshire

Last year Nathan, came very close to the 80-year mark with the lease on his first floor apartment in Banbury. Having purchased his home twenty years ago, the lease term was of minimal interest. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Nathan was able to extend his lease at the eleventh hour in May. Nathan and the landlord in the end settled on sum of £5,500 . If he not met the deadline, the price would have increased by at least £1,025.

Banbury case:

Mr and Mrs. K Mitchell bought a purpose-built flat in Banbury in April 2009. We are asked if we could estimate the price could be to prolong the lease by an additional years. Identical properties in Banbury with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2097. Taking into account 71 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.

Banbury case:

Last Winter we were approach by Dr E Flores , who completed a ground floor apartment in Banbury in June 2003. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical residencies in Banbury with 100 year plus lease were worth £225,800. The average ground rent payable was £60 collected per annum. The lease lapsed on 8 September 2086. Given that there were 60 years outstanding we calculated the compensation to the landlord for the lease extension to be within £25,700 and £29,600 exclusive of expenses.