Top reasons for Downton lease extension

Top reasons for lease extension now:

A Downton leasehold property depreciates with the years remaining on the lease.

For those whose Downton flat is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.

An extended lease is almost the same value as a freehold

It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lenders may not finance a property with a short lease

Banks and building societies are really restricting their approach as regards to properties in Downton with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus limiting the number of potential buyers.

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

Regardless of whether you are a tenant or a landlord in Downton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Downton valuers.

Downton Lease Extension Example Cases:

Riley, Downton, Wiltshire

Last Summer Riley, started to get near to the 80-year mark with the lease on his leasehold apartment in Downton. Having bought his home 18 years ago, the lease term was of no significance. by good luck, he recognised he would soon be paying an escalated premium for Extending the lease. Riley was able to extend his lease just in the nick of time in March. Riley and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had slipped lower than 80 years, the premium would have become more exhorbitant by at least £1,050.

Downton case:

Mr R Robinson completed a purpose-built apartment in Downton in October 1996. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable homes in Downton with a long lease were valued around £270,000. The average ground rent payable was £55 billed every twelve months. The lease end date was on 22 May 2101. Considering the 75 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.

Downton case:

In 2011 we were approached by Dr S Nguyen who, having bought a one bedroom apartment in Downton in February 2009. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparable properties in Downton with 100 year plus lease were in the region of £168,800. The average amount of ground rent was £60 collected yearly. The lease finished in 2081. Having 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.