Top reasons for Cannington lease extension

Why you should start your Cannington lease extension today:

Increase your lease and increase your Cannington property value

Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cannington. Clearly, the period of lease left shortens over time. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Cannington have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give careful attention before delaying your Cannington lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease

An extended lease has roughly the same value as a freehold

Leasehold premises in Cannington with over 100 years unexpired 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not finance a property with a short lease

Mortgage lenders have set criteria when lending monies charged on leasehold property. Some will simply refuse lend at all once the remaining lease term falls below a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below 75 years suitable security. As well as this being important when selling, it is also relevant where you are intending to remortgage your Cannington property.

What makes us experts in Cannington lease extensions?

The lawyers that we work with undertake Cannington 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 conveyancer we work with provide it.

Cannington Lease Extension Case Summaries:

Victoria, Cannington, Somerset,

Following protracted correspondence with the freeholder of her ground floor flat in Cannington, Victoria initiated the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The transaction was concluded in March 2005. The freeholder’s charges were kept to an absolute minimum.

Cannington case:

Last Summer we were e-mailed by Mr and Mrs. W Mercier , who completed a purpose-built flat in Cannington in October 2003. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable homes in Cannington with an extended lease were worth £173,800. The mid-range ground rent payable was £60 billed per annum. The lease ran out on 3 October 2081. Given that there were 55 years left we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.

Cannington case:

Last Autumn we were phoned by Dr Y André , who acquired a basement apartment in Cannington in February 2012. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable homes in Cannington with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 collected monthly. The lease finished on 4 January 2092. Given that there were 66 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.