Top reasons for Cotswolds lease extension

Main reasons to start your Cotswolds lease extension today:

Increase your lease and increase your Cotswolds property value

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Cotswolds have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Cotswolds lease extension. Shelving the costs today simply increases the premium you will eventually be required to pay for a lease extension.

Cotswolds property with a lease extension is almost the same value as a freehold

Leasehold properties in Cotswolds with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions will not grant a mortgage on a short lease

Banks and building societies are really restricting their approach as regards to properties in Cotswolds with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus limiting the amount of prospective buyers.

What makes us experts in Cotswolds lease extensions?

Using our service will provide you better control over the value of your Cotswolds leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Cotswolds Lease Extension Example Cases:

Jamie, Cotswolds, Gloucestershire

14 months ago Jamie, came critically close to the eighty-year threshold with the lease on his ground floor apartment in Cotswolds. In buying his flat 19 years previously, the length of the lease was of little significance. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Jamie extended the lease just ahead of time last January. Jamie and the landlord ultimately agreed on the final figure of £6,000 . If he not met the deadline, the sum would have increased by at least £1,150.

Cotswolds case:

In 2013 we were called by Mr and Mrs. J González who, having bought a one bedroom flat in Cotswolds in January 1995. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparable premises in Cotswolds with a long lease were worth £260,000. The average ground rent payable was £50 invoiced monthly. The lease ended in 2098. Considering the 72 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.

Cotswolds case:

Dr Emma François bought a first floor flat in Cotswolds in October 1996. The question was if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Cotswolds with a long lease were in the region of £256,600. The average amount of ground rent was £60 billed yearly. The lease expired on 18 January 2078. Considering the 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of legals.