Why you should start your Carisbrooke lease extension

Top reasons for lease extension now:

Increase your lease and increase your Carisbrooke property value

Carisbrooke leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Carisbrooke tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Carisbrooke you must see if your lease has between 70 and 90 years left. There are compelling reasons why a Carisbrooke flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay

Carisbrooke property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to lend with a short lease

Mortgage companies are inclined not grant a mortgage on short residential leases. You are likely to encounter difficulties if you want to sell your flat in Carisbrooke if the remaining lease term is below the criteria set by most banks and building societies. Different mortgage companies have different criteria but generally they are looking for a minimum remaining lease term of 65 years.

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

The conveyancers that we work with procure Carisbrooke 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.

Carisbrooke Lease Extension Case Studies:

Jamie, Carisbrooke, Isle Of Wight,

Jamie was the the leasehold owner of a high value flat in Carisbrooke being sold with a lease of fraction over 72 years remaining. Jamie informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and secured satisfactory deal informally and sell the flat.

Carisbrooke case:

Mr and Mrs. K Bernard completed a one bedroom apartment in Carisbrooke in January 2010. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparative flats in Carisbrooke with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 invoiced yearly. The lease terminated on 13 September 2087. Considering the 61 years as a residual term we approximated the premium to the landlord for the lease extension to be between £22,800 and £26,400 not including legals.

Carisbrooke case:

Last month we were phoned by Dr V Turner , who completed a ground floor flat in Carisbrooke in February 2010. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparable properties in Carisbrooke with 100 year plus lease were valued about £166,800. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired in 2076. Taking into account 50 years remaining we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.