Why you should commence your Box lease extension

Top reasons for lease extension now:

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

Box leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Box residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Box you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Box with more than one hundred 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions will not lend with a short lease

Lenders do not grant a mortgage on short residential leases. You most probably experience difficulties where you wish to sell your flat in Box if the remaining term of your lease is less than the criteria set by the majority of mortgage companies. Different lenders have varying criteria but generally they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Box?

Regardless of whether you are a tenant or a landlord in Box,the lease extension lawyers 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 Box valuers.

Box Lease Extension Case Studies:

Yasmin, Box, Wiltshire,

Following protracted correspondence with the landlord of her ground floor apartment in Box, Yasmin commenced the lease extension process as the 80 year mark was quickly coming. The lease extension completed in February 2012. The landlord’s fees were kept to an absolute minimum.

Box case:

Last Christmas we were approach by Ms P Ward , who moved into a ground floor flat in Box in March 2003. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical homes in Box with 100 year plus lease were valued around £237,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired on 2 October 2093. Taking into account 67 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.

Box case:

In 2011 we were called by Mr F Mercier who, having purchased a ground floor apartment in Box in March 1998. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Box with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish on 24 January 2104. Considering the 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.