Top reasons for Cranleigh lease extension

Top reasons for lease extension now:

A Cranleigh lease depreciates with the years remaining on the lease.

Cranleigh leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Cranleigh will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.

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

Leasehold residencies in Cranleigh with over one hundred years unexpired on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not lend with a short lease

Lending institutions have set criteria when lending monies secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term falls below a certain unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are seeking to remortgage your Cranleigh home.

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

Regardless of whether you are a tenant or a landlord in Cranleigh,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cranleigh valuers.

Cranleigh Lease Extension Example Cases:

Jacob, Cranleigh, Surrey,

Jacob was the the leasehold owner of a conversion flat in Cranleigh being marketed with a lease of fraction over 72 years left. Jacob informally spoke with 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 subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Cranleigh case:

Mr and Mrs. L Mitchell completed a ground floor flat in Cranleigh in August 1995. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Cranleigh with 100 year plus lease were worth £186,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed in 2084. Given that there were 58 years outstanding we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 plus fees.

Cranleigh case:

Last Summer we were approach by Dr Lewis Peterson , who acquired a recently refurbished flat in Cranleigh in March 2003. The question was if we could estimate the premium could be to prolong the lease by ninety years. Comparative homes in Cranleigh with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected yearly. The lease expiry date was in 2095. Taking into account 69 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.