Why you should start your Banbury lease extension

Top reasons for lease extension now:

Increase your lease and increase your Banbury property value

Banbury leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Banbury will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may not issue a mortgage on a short lease

Banks and building societies are really clamping down as regards to properties in Banbury with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus limiting the number of potential purchasers.

What makes us experts in Banbury lease extensions?

The conveyancing solicitors that we work with procure Banbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Banbury Lease Extension Example Cases:

Chloe, Banbury, Oxfordshire,

Subsequent to unsuccessful negotiations with the landlord of her basement apartment in Banbury, Chloe initiated the lease extension process as the eighty year deadline was swiftly approaching. The legal work was concluded in June 2009. The landlord’s charges were kept to an absolute minimum.

Banbury case:

Mrs Y Díaz owned a purpose-built apartment in Banbury in June 2009. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Banbury with an extended lease were in the region of £181,600. The average amount of ground rent was £55 billed monthly. The lease terminated in 2078. Given that there were 52 years unexpired we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.

Banbury case:

Last Winter we were called by Mr Adam Bailey , who acquired a studio flat in Banbury in March 2001. The question was if we could approximate the premium could be to prolong the lease by an additional years. Similar homes in Banbury with an extended lease were worth £285,000. The average ground rent payable was £45 billed monthly. The lease ended in 2098. Having 72 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.