Why you should commence your Berkhamsted lease extension

Why you should commence your Berkhamsted lease extension today:

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

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 residencies in Berkhamsted with in excess of 100 years remaining 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 buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders will not grant a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Berkhamsted lease extensions?

Regardless of whether you are a tenant or a freeholder in Berkhamsted,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Berkhamsted valuers.

Berkhamsted Lease Extension Case Summaries:

Zachary, Berkhamsted, Hertfordshire

In recent months Zachary, started to get near to the eighty-year threshold with the lease on his studio flat in Berkhamsted. In buying his property twenty years ago, the unexpired term was of no relevance. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Zachary was able to extend his lease just ahead of time last January. Zachary and the landlord eventually agreed on sum of £5,500 . If he had missed the deadline, the sum would have increased by at least £850.

Berkhamsted case:

Last Christmas we were approach by Mr Gabriel Petit , who was assigned a lease of a purpose-built flat in Berkhamsted in February 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Berkhamsted with a long lease were valued about £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded on 10 October 2080. Having 54 years unexpired we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of legals.

Berkhamsted case:

Last year we were phoned by Mr W Rodríguez , who acquired a ground floor apartment in Berkhamsted in August 2012. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Identical premises in Berkhamsted with 100 year plus lease were worth £227,800. The average ground rent payable was £45 invoiced per annum. The lease terminated in 2091. Taking into account 65 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.