Main reasons to commence your Basingstoke lease extension

Top reasons for lease extension now:

Increase your lease and increase your Basingstoke property value

It’s a harsh certainty that a Basingstoke residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Basingstoke property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of flat owners in Basingstoke will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.

Basingstoke property with a lease extension is almost the same value as a freehold

Leasehold residencies in Basingstoke with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may decide not to lend with a short lease

The trend since 2008 has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Basingstoke lease extensions?

Lease extensions in Basingstoke can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.

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 Basingstoke lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Basingstoke Lease Extension Case Summaries:

Charlie, Basingstoke, Hampshire,

Charlie owned a high value flat in Basingstoke on the market with a lease of a little over 72 years unexpired. Charlie informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.

Basingstoke case:

Dr Finn Moreau acquired a garden flat in Basingstoke in September 1996. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable premises in Basingstoke with 100 year plus lease were valued around £265,200. The average ground rent payable was £65 collected monthly. The lease came to a finish on 10 February 2092. Considering the 66 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of legals.

Basingstoke case:

Mr Eliot Watson acquired a ground floor flat in Basingstoke in June 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Basingstoke with an extended lease were valued around £198,800. The average ground rent payable was £55 collected quarterly. The lease expired in 2081. Taking into account 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including legals.