Main reasons to start your Canterbury lease extension

Main reasons to commence your Canterbury lease extension today:

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

Canterbury leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Canterbury will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Canterbury with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders will not grant a mortgage on a short lease

Mortgage companies are inclined not lend on short residential leases. You are likely to encounter problems where you want to sell your flat in Canterbury if the remaining term of your lease is under the criteria set by most mortgage companies. Different mortgage companies have different criteria but on the whole they are looking for an unexpired term of at least 65 years.

What makes us experts in Canterbury lease extensions?

Engaging our service gives you better control over the value of your Canterbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Canterbury Lease Extension Case Studies:

Connor, Canterbury, Kent,

Connor was the the leasehold proprietor of a high value apartment in Canterbury being sold with a lease of fraction over fifty eight years outstanding. Connor on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.

Canterbury case:

Mr and Mrs. A Moore acquired a studio apartment in Canterbury in November 2007. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Canterbury with a long lease were valued around £227,800. The average ground rent payable was £45 billed annually. The lease ran out in 2091. Given that there were 65 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.

Canterbury case:

Dr F Rose moved into a studio flat in Canterbury in May 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Identical premises in Canterbury with an extended lease were valued around £275,000. The mid-range amount of ground rent was £55 billed annually. The lease expiry date was on 13 January 2102. Taking into account 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.