Top reasons for Church Stretton lease extension

Why you should start your Church Stretton lease extension today:

A Church Stretton lease depreciates with the years remaining on the lease.

Church Stretton leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, 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 take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Church Stretton will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Church Stretton with more than 100 years outstanding on the lease are sometimes regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lenders may not issue a mortgage with a short lease

Banks and building societies are really clamping down as regards to properties in Church Stretton with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus reducing your market.

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

The lawyers that we work with handle Church Stretton 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.

Church Stretton Lease Extension Case Studies:

Jodie, Church Stretton, Shropshire,

After lengthy correspondence with the freeholder of her leasehold flat in Church Stretton, Jodie initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work completed in June 2006. The freeholder’s costs were negotiated to about 450 pounds.

Church Stretton case:

Last Winter we were called by Mr Max Lewis , who owned a first floor apartment in Church Stretton in August 2001. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative residencies in Church Stretton with an extended lease were in the region of £210,600. The average amount of ground rent was £45 collected monthly. The lease ran out in 2088. Having 62 years remaining we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including legals.

Church Stretton case:

In 2009 we were phoned by Dr P Allen who, having moved into a recently refurbished apartment in Church Stretton in March 2000. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative properties in Church Stretton with an extended lease were in the region of £265,000. The average amount of ground rent was £50 billed quarterly. The lease finished on 8 February 2099. Taking into account 73 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.