Why you should commence your Clun lease extension

Main reasons to commence your Clun lease extension today:

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

The market value of Clun leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is below than eighty years

An extended lease has roughly the same value as a freehold

Leasehold properties in Clun with more than 100 years remaining 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to finance a property on a short lease

Many mortgage lenders will not grant a mortgage on a lease with less than seventy years unexpired - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Clun property being difficult to dispose of or remortgage.

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

The conveyancing solicitors that we work with handle Clun 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.

Clun Lease Extension Example Cases:

Dylan, Clun, Shropshire

Half a year ago Dylan, started to get close to the 80-year mark with the lease on his studio apartment in Clun. In buying his flat two decades ago, the length of the lease was of minimal importance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Dylan extended the lease just under the wire last July. Dylan and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had slipped to less than 80 years, the amount would have increased by at least £975.

Clun case:

In 2013 we were called by Mr and Mrs. T Scott who, having acquired a newly refurbished apartment in Clun in February 2005. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar homes in Clun with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2088. Given that there were 62 years outstanding we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of costs.

Clun case:

Mr and Mrs. O Ricardo was assigned a lease of a one bedroom apartment in Clun in January 2001. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative premises in Clun with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 collected quarterly. The lease expired in 2099. Considering the 73 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.