Why you should start your Cotswolds lease extension

Top reasons for lease extension now:

Increase your lease and increase your Cotswolds property value

Cotswolds leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Cotswolds will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.

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

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may not finance a property with a short lease

Many banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate lending on it. Regardless of whether you need a mortgage, you should be conscious that it is probable that someone wanting to acquire your property in the future might well do, so in the event that they are unable to get a mortgage, then the value of your property will likely suffer. Since 2008 many banks and building societies have increased the required minimum lease length that they are prepared to lend on

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

Irrespective of whether you are a tenant or a freeholder in Cotswolds,the lease extension experts that we work with will always be prepared 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 Case Studies:

Zachary, Cotswolds, Gloucestershire

Last year Zachary, started to get close to the 80-year mark with the lease on his basement apartment in Cotswolds. In buying his home twenty years previously, the lease term was of little importance. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Zachary was able to extend his lease just ahead of time last May. Zachary and the landlord in the end settled on the final figure of £5,000 . If the lease had slipped lower than eighty years, the amount would have gone up by a minimum £925.

Cotswolds case:

Last month we were approach by Ms D Harris , who took over the lease of a basement flat in Cotswolds in May 2012. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Cotswolds with a long lease were worth £220,400. The average amount of ground rent was £45 invoiced annually. The lease lapsed on 24 November 2090. Having 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including fees.

Cotswolds case:

Last Summer we were called by Mrs F Nelson , who owned a one bedroom apartment in Cotswolds in November 2004. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative properties in Cotswolds with an extended lease were worth £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease ran out in 2101. Having 75 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.