Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Cleobury Mortimer. Inevitably, the term of lease left reduces as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Cleobury Mortimer have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give due attention before delaying your Cleobury Mortimer lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Cleobury Mortimer 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.
Archie owned a 2 bedroom apartment in Cleobury Mortimer being marketed with a lease of fraction over 61 years remaining. Archie informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr and Mrs. E Scott owned a purpose-built flat in Cleobury Mortimer in January 2010. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical homes in Cleobury Mortimer with an extended lease were worth £210,000. The average amount of ground rent was £50 collected per annum. The lease came to a finish in 2106. Taking into account 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
Ms H Young purchased a ground floor flat in Cleobury Mortimer in August 1998. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative homes in Cleobury Mortimer with an extended lease were worth £280,000. The average ground rent payable was £45 collected monthly. The lease lapsed on 28 September 2095. Having 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.