Top reasons for Cotswolds lease extension

Why you should commence your Cotswolds lease extension today:

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

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Cotswolds. Inevitably, the term of lease left shortens over time. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Cotswolds have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Cotswolds lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension

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

Leasehold premises in Cotswolds with more than 100 years unexpired on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Banks and building societies are tightening their criteria and many now require flats to have a minimum of 60 if not 70 years left once the mortgage has expired. As many flats in Cotswolds were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Cotswolds lease extensions?

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

Cotswolds Lease Extension Example Cases:

Andrew, Cotswolds, Gloucestershire

Last year Andrew, started to get close to the 80-year threshold with the lease on his garden flat in Cotswolds. Having purchased his flat 18 years ago, the lease term was of minimal bearing. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Andrew was able to extend his lease just under the wire last May. Andrew and the freeholder ultimately settled on an amount of £5,500 . If the lease had dipped lower than eighty years, the amount would have gone up by at least £1,150.

Cotswolds case:

Mr Jackson Bonnet purchased a newly refurbished apartment in Cotswolds in September 1998. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative flats in Cotswolds with an extended lease were valued about £245,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2094. Considering the 68 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.

Cotswolds case:

Ms B Phillips moved into a recently refurbished flat in Cotswolds in June 2009. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative properties in Cotswolds with an extended lease were in the region of £285,000. The average ground rent payable was £55 billed monthly. The lease end date was in 2105. Having 79 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.