Why you should commence your Calcot lease extension

Top reasons for lease extension now:

Increase your lease and increase your Calcot property value

Calcot leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Calcot will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to loan monies with a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Calcot lease extensions?

The lawyers that we work with handle Calcot 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 conveyancing solicitor we work with provide it.

Calcot Lease Extension Example Cases:

Aarav, Calcot, Berkshire

In recent months Aarav, came very near to the 80-year mark with the lease on his leasehold flat in Calcot. In buying his flat 19 years previously, the lease term was of minimal interest. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Aarav arranged for a lease extension just in the nick of time in June. Aarav and the freeholder in the end settled on a premium of £5,000 . If the lease had dropped lower than eighty years, the sum would have gone up by at least £1,125.

Calcot case:

Mr and Mrs. V Roberts was assigned a lease of a newly refurbished flat in Calcot in August 2009. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative residencies in Calcot with a long lease were valued about £200,000. The average ground rent payable was £50 billed quarterly. The lease expired in 2103. Considering the 77 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.

Calcot case:

In 2010 we were e-mailed by Mr and Mrs. Y Ward who, having purchased a one bedroom apartment in Calcot in September 1998. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Calcot with an extended lease were valued around £260,200. The average ground rent payable was £65 collected yearly. The lease elapsed in 2092. Given that there were 66 years unexpired we estimated the premium to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of costs.