Why you should start your Craven Arms lease extension

Main reasons to commence your Craven Arms lease extension today:

A Craven Arms leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Craven Arms can extend the lease for a further 90 years under statute. Do think carefully before delaying your Craven Arms lease extension. Shelving that expense now simply escalates the premium you will eventually have to pay for a lease extension.

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

Leasehold residencies in Craven Arms with more than 100 years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not finance a property with a short lease

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

The conveyancers that we work with procure Craven Arms 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 conveyancing solicitor we work with provide it.

Craven Arms Lease Extension Example Cases:

Lucas, Craven Arms, Shropshire,

Lucas owned a studio apartment in Craven Arms on the market with a lease of a few days over 59 years remaining. Lucas on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.

Craven Arms case:

Ms Mollie Collins completed a purpose-built apartment in Craven Arms in October 2007. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Craven Arms with a long lease were worth £295,000. The mid-range ground rent payable was £45 collected per annum. The lease finished in 2100. Having 74 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.

Craven Arms case:

In 2014 we were called by Mr and Mrs. V Moore who, having purchased a ground floor apartment in Craven Arms in July 1996. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in Craven Arms with an extended lease were valued around £248,000. The average ground rent payable was £65 billed monthly. The lease expired on 1 August 2089. Having 63 years outstanding we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of fees.