Top reasons for Cotswolds lease extension

Top reasons for lease extension now:

Increase your lease and increase your Cotswolds property value

The re-sale value of a leasehold property in Cotswolds depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be finalised in advance of the 80 year mark. Current legislation entitles Cotswolds qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Cotswolds with in excess of one hundred 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

Lenders may decide not to finance a property on a short lease

Mortgage companies are tightening their criteria and a meaningful number now want flats to have a minimum of sixty if not seventy years remaining at the expiry of the mortgage. Considering many flats in Cotswolds were created in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Cotswolds lease extensions?

The conveyancing solicitors that we work with undertake Cotswolds 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.

Cotswolds Lease Extension Case Studies:

Luke, Cotswolds, Gloucestershire

Last Spring Luke, came very close to the 80-year mark with the lease on his leasehold apartment in Cotswolds. In buying his flat 18 years ago, the lease term was of no importance. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Luke arranged for a lease extension just in the nick of time in June. Luke and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £900.

Cotswolds case:

In 2014 we were phoned by Mr and Mrs. S Díaz who, having took over the lease of a garden apartment in Cotswolds in May 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Cotswolds with an extended lease were in the region of £275,000. The average amount of ground rent was £55 billed every twelve months. The lease expired on 4 September 2102. Taking into account 76 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.

Cotswolds case:

Mr and Mrs. H Turner completed a one bedroom apartment in Cotswolds in July 2002. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical flats in Cotswolds with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 collected annually. The lease expiry date was in 2082. Given that there were 56 years as a residual term we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of costs.