Why you should start your Calne lease extension

Why you should commence your Calne lease extension today:

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

With a residential leasehold property in Calne, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years left. Anyone in Calne with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the relevant statute the landlord is entitled to calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in Calne with more than 100 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to grant a mortgage with a short lease

Lenders are tightening their criteria and many now expect flats to have at least sixty if not seventy years left once the mortgage has expired. As many flats in Calne were created in the fifties, sixties and seventies as a result many now require lease extensions if they wish to get a mortgage.

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

Lease extensions in Calne can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Calne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Calne Lease Extension Example Cases:

Jennifer, Calne, Wiltshire,

Off the back of lengthy correspondence with the freeholder of her studio apartment in Calne, Jennifer started the lease extension process as the eighty year threshold was rapidly coming. The legal work was finalised in November 2005. The freeholder’s charges were restricted to about 650 pounds.

Calne case:

In 2010 we were e-mailed by Dr O Moore who, having took over the lease of a one bedroom apartment in Calne in August 1995. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Calne with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease elapsed on 22 March 2097. Considering the 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.

Calne case:

Last Autumn we were e-mailed by Dr E Thomas , who bought a ground floor flat in Calne in July 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative properties in Calne with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease expired on 16 March 2086. Considering the 60 years remaining we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus legals.