Why you should start your Cleobury Mortimer lease extension

Top reasons for lease extension now:

Increase your lease and increase your Cleobury Mortimer property value

The market value of a leasehold property in Cleobury Mortimer depends on how many years the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded prior to the eighty year cut off point. Statute enables Cleobury Mortimer qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Cleobury Mortimer with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Lenders may not grant a mortgage on a short lease

Mortgage companies are really restricting their approach as regards to homes in Cleobury Mortimer with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus limiting the amount of potential buyers.

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

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

Cleobury Mortimer Lease Extension Case Summaries:

Gemma, Cleobury Mortimer, Shropshire,

Trailing lengthy discussions with the landlord of her purpose-built apartment in Cleobury Mortimer, Gemma commenced the lease extension process as the eighty year threshold was quickly approaching. The lease extension was concluded in August 2014. The landlord’s fees were negotiated to under 600 GBP.

Cleobury Mortimer case:

Mr and Mrs. D Turner was assigned a lease of a one bedroom apartment in Cleobury Mortimer in February 2011. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Cleobury Mortimer with an extended lease were worth £275,000. The average ground rent payable was £65 billed per annum. The lease elapsed on 20 July 2094. Considering the 68 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.

Cleobury Mortimer case:

Mr and Mrs. E Sharif bought a newly refurbished flat in Cleobury Mortimer in October 2001. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical residencies in Cleobury Mortimer with a long lease were worth £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease ended on 20 February 2083. Given that there were 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.