Top reasons for Downton lease extension

Main reasons to commence your Downton lease extension today:

Increase your lease and increase your Downton property value

Downton leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Leasehold owners in Downton will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to lend on a short lease

Most banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will consider lending on it. Regardless of whether you need a mortgage, you should be conscious that it is probable that someone wishing to acquire your property in the future might well do, so where they can't secure a mortgage, then the financial worth of your property will likely suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

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

Downton Lease Extension Example Cases:

Leon, Downton, Wiltshire

In 2014 Leon, started to get close to the eighty-year mark with the lease on his leasehold apartment in Downton. In buying his home 18 years ago, the unexpired term was of minimal significance. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Leon extended the lease at the eleventh hour in June. Leon and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If the lease had dipped below eighty years, the premium would have increased by a minimum £850.

Downton case:

Last Autumn we were approach by Mr and Mrs. Y Lefèvre , who took over the lease of a one bedroom flat in Downton in March 2002. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in Downton with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated in 2082. Taking into account 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of costs.

Downton case:

Mr and Mrs. B Hernández completed a ground floor flat in Downton in February 2007. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable flats in Downton with an extended lease were in the region of £237,600. The average amount of ground rent was £45 invoiced every twelve months. The lease finished on 20 February 2093. Taking into account 67 years remaining we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus costs.