Main reasons to commence your Berkhamsted lease extension

Top reasons for lease extension now:

Increase your lease and increase your Berkhamsted property value

On the balance of probabilities where you own a flat in Berkhamsted you actually own a long leasehold interest over your property

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

Leasehold premises in Berkhamsted with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lenders may not grant a mortgage with a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below seventy years as they are regarded as unacceptable for lending purposes.

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

The lawyers that we work with undertake Berkhamsted 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.

Berkhamsted Lease Extension Example Cases:

Sam, Berkhamsted, Hertfordshire,

Sam was the the leasehold owner of a 2 bedroom apartment in Berkhamsted on the market with a lease of fraction over 59 years left. Sam on an informal basis contacted his freeholder 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 at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.

Berkhamsted case:

In 2009 we were phoned by Mr and Mrs. I Murphy who, having took over the lease of a ground floor apartment in Berkhamsted in June 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar properties in Berkhamsted with an extended lease were valued around £210,600. The mid-range ground rent payable was £45 invoiced monthly. The lease came to a finish in 2088. Considering the 62 years unexpired we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.

Berkhamsted case:

Mrs Chantelle Mason completed a first floor apartment in Berkhamsted in July 2005. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar residencies in Berkhamsted with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished in 2099. Given that there were 73 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.