Main reasons to start your Canford Heath lease extension

Top reasons for lease extension now:

A Canford Heath lease depreciates with the years remaining on the lease.

Unfortunately that a Canford Heath residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Canford Heath property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Most flat owners in Canford Heath will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.

An extended lease is almost the same value as a freehold

Leasehold premises in Canford Heath with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

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

Nearly all banks and building societies will not lend on a lease with under seventy years remaining - although this varies between mortgage companies. A buyer will undoubtedly find it difficult to obtain a mortgage and this will result in your Canford Heath property being difficult to sell or to obtain finance on.

What makes us experts in Canford Heath lease extensions?

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

Canford Heath Lease Extension Example Cases:

Eliot, Canford Heath, Dorset

Last year Eliot, came critically close to the 80-year mark with the lease on his basement flat in Canford Heath. In buying his property 18 years previously, the lease term was of no relevance. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Eliot was able to extend his lease just ahead of time in March. Eliot and the freeholder eventually settled on an amount of £5,500 . If the lease had descended lower than eighty years, the amount would have gone up by a minimum £1,000.

Canford Heath case:

Mr and Mrs. W López completed a first floor apartment in Canford Heath in January 2003. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar premises in Canford Heath with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed monthly. The lease elapsed in 2096. Taking into account 70 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Canford Heath case:

In 2010 we were approached by Ms C Johnson who, having acquired a first floor apartment in Canford Heath in January 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable homes in Canford Heath with 100 year plus lease were valued around £246,800. The average amount of ground rent was £60 collected yearly. The lease end date was on 6 June 2076. Having 50 years remaining we approximated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of professional charges.