Top reasons for 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.

Craven Arms leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Craven Arms residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Craven Arms you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold residencies in Craven Arms with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to finance a property on a short lease

Banks and building societies are really restricting their approach as regards to homes in Craven Arms with short leases. For example you might discover 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 refrain from lending completely, so where you needed to sell, your only options would be to find a cash buyer, or try your luck at auction thus limiting the amount of potential purchasers.

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

The lawyers that we work with undertake 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 lawyer we work with provide it.

Craven Arms Lease Extension Example Cases:

Edward, Craven Arms, Shropshire,

Edward owned a studio apartment in Craven Arms on the market with a lease of a few days over sixty years unexpired. Edward on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Edward to invoke his statutory right. Edward obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.

Craven Arms case:

In 2013 we were contacted by Mr and Mrs. K Bell who, having completed a recently refurbished apartment in Craven Arms in October 2009. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative flats in Craven Arms with an extended lease were worth £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease expiry date was on 6 July 2081. Considering the 55 years remaining we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including expenses.

Craven Arms case:

Last Spring we were e-mailed by Dr Freddie Ward , who took over the lease of a one bedroom flat in Craven Arms in August 2012. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Craven Arms with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed yearly. The lease expired on 25 March 2101. Having 75 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.