Why you should commence your Didcot lease extension

Why you should commence your Didcot lease extension today:

Increase your lease and increase your Didcot property value

Didcot 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 gets more expensive. Legislation has been in place for sometime now which entitles qualifying Didcot residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Didcot you really ought to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Didcot leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Didcot with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges warrant it.

Lenders may decide not to loan monies on a short lease

Banks and building societies are making their criteria more stringent and many now expect flats to have a minimum of 60 if not 70 years left at the end of the mortgage. Considering a number of flats in Didcot were built in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

Engaging our service gives you better control over the value of your Didcot leasehold, as your property will be more valuable and marketable in terms 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.

Didcot Lease Extension Case Studies:

Hugo, Didcot, Oxfordshire

Two years ago Hugo, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Didcot. Having purchased his flat twenty years ago, the unexpired term was of minimal interest. As luck would have it, he realised he needed to take action soon on a lease extension. Hugo was able to extend his lease just ahead of time last March. Hugo and the freeholder via the management company ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the premium would have become more costly by a minimum £1,050.

Didcot case:

Last Summer we were contacted by Mr Dylan Jackson , who took over the lease of a purpose-built flat in Didcot in April 1998. The question was if we could estimate the price could be to prolong the lease by ninety years. Comparative flats in Didcot with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 billed every twelve months. The lease end date was on 21 January 2090. Considering the 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.

Didcot case:

Mr B Miller bought a garden apartment in Didcot in October 2005. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar homes in Didcot with a long lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced annually. The lease end date was on 28 February 2101. Given that there were 75 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.