Top reasons for Colchester lease extension

Top reasons for lease extension now:

A Colchester leasehold property depreciates with the years remaining on the lease.

Colchester residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not grant a mortgage with a short lease

Mortgage lenders have set criteria when lending monies secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term drops lower than a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Colchester property.

What makes us experts in Colchester lease extensions?

The conveyancing solicitors that we work with procure Colchester 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 lawyer we work with provide it.

Colchester Lease Extension Example Cases:

Finn, Colchester, Essex,

Finn was the the leasehold proprietor of a high value apartment in Colchester being sold with a lease of a few days over 72 years unexpired. Finn informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and secured satisfactory deal informally and sell the flat.

Colchester case:

In 2010 we were phoned by Dr E Morel who, having took over the lease of a studio apartment in Colchester in February 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical homes in Colchester with an extended lease were valued around £173,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished on 6 May 2081. Having 55 years unexpired we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.

Colchester case:

Mr and Mrs. A Mercier took over the lease of a one bedroom flat in Colchester in June 1995. The question was if we could approximate the price would be for a 90 year lease extension. Comparative flats in Colchester with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced annually. The lease finished in 2092. Considering the 66 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.