Main reasons to commence your Colwall lease extension

Top reasons for lease extension now:

Increase your lease and increase your Colwall property value

Unfortunately that a Colwall residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Colwall property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Most flat owners in Colwall will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.

Colwall property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not loan monies on a short lease

Most banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should keep in mind that it is reasonable to assume that someone wanting to purchase your property in the future might well do, so if they are unable to obtain a mortgage, then the financial worth of your property will likely be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to lend on

What makes us experts in Colwall lease extensions?

Lease extensions in Colwall can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Colwall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Colwall Lease Extension Case Summaries:

Ibrahim, Colwall, Herefordshire,

Ibrahim owned a conversion apartment in Colwall on the market with a lease of fraction over 72 years remaining. Ibrahim informally approached his freeholder 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 subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.

Colwall case:

In 2013 we were approached by Dr A Sánchez who, having was assigned a lease of a purpose-built flat in Colwall in March 1997. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar premises in Colwall with an extended lease were valued around £196,400. The average amount of ground rent was £55 collected yearly. The lease termination date was on 7 October 2080. Having 54 years left we estimated the compensation to the freeholder to extend the lease to be within £35,200 and £40,600 exclusive of legals.

Colwall case:

Last October we were contacted by Mr and Mrs. F Taylor , who owned a ground floor flat in Colwall in August 1998. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable homes in Colwall with an extended lease were worth £295,000. The average ground rent payable was £45 billed quarterly. The lease end date was in 2100. Having 74 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.