Why you should commence your Cowes lease extension

Main reasons to start your Cowes lease extension today:

A Cowes 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 , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cowes. Clearly, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Cowes have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Please give due deliberation before delaying your Cowes lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension

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

Leasehold properties in Cowes with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not finance a property with a short lease

Many mortgage companies insist on a lengthy amount of time left on a leasehold property before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should be conscious that it is reasonable to assume that someone wishing to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the financial worth of your property could suffer. Since 2008 many mortgage lenders have increased the required minimum lease length that they are willing to lend on

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

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

Cowes Lease Extension Example Cases:

Ethan, Cowes, Isle Of Wight,

Ethan was the the leasehold proprietor of a high value apartment in Cowes on the market with a lease of a few days over 59 years left. Ethan on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and secured satisfactory deal informally and readily saleable.

Cowes case:

Ms Rebecca Walker owned a basement flat in Cowes in September 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar residencies in Cowes with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease end date was on 5 May 2077. Having 51 years outstanding we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of expenses.

Cowes case:

Last Autumn we were phoned by Mr and Mrs. K Howard , who took over the lease of a recently refurbished flat in Cowes in October 1999. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Identical properties in Cowes with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 billed quarterly. The lease came to a finish in 2088. Taking into account 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus fees.