Why you should start your Berkhamsted lease extension

Top reasons for lease extension now:

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

The value of Berkhamsted leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years

Berkhamsted property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Lenders will not issue a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Berkhamsted lease extensions?

Using our service gives you enhanced control over the value of your Berkhamsted leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Berkhamsted Lease Extension Example Cases:

Elijah, Berkhamsted, Hertfordshire

Last Winter Elijah, came perilously near to the 80-year mark with the lease on his ground floor apartment in Berkhamsted. In buying his flat 19 years previously, the length of the lease was of no bearing. Thankfully, he became aware that he needed to take steps soon on a lease extension. Elijah extended the lease just ahead of time last January. Elijah and the landlord subsequently agreed on the final figure of £6,000 . If the lease had slipped below 80 years, the price would have escalated by a minimum £950.

Berkhamsted case:

Last Spring we were contacted by Dr Lewis Young , who bought a newly refurbished flat in Berkhamsted in June 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Berkhamsted with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 collected per annum. The lease elapsed in 2085. Having 60 years as a residual term we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.

Berkhamsted case:

In 2012 we were approached by Mr and Mrs. G Murphy who, having owned a basement flat in Berkhamsted in November 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative flats in Berkhamsted with an extended lease were valued around £260,000. The average amount of ground rent was £50 collected monthly. The lease expired in 2096. Considering the 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.