Main reasons to start your Droitwich Spa lease extension

Why you should start your Droitwich Spa lease extension today:

Increase your lease and increase your Droitwich Spa property value

Droitwich Spa leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Droitwich Spa residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Droitwich Spa you should see if your lease has between 70 and ninety years left. There are good reasons why a Droitwich Spa leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.

Lenders may not finance a property on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This will cause difficulties as and when you wish to market or refinance your property as it will be effectively unmortgageable. You might have no immediate plan to sell but when you do your buyer must wait two years before they can commence the legal procedures for a lease extension.

What makes us experts in Droitwich Spa lease extensions?

Irrespective of whether you are a tenant or a freeholder in Droitwich Spa,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 experience and the close ties they enjoy with Droitwich Spa valuers.

Droitwich Spa Lease Extension Example Cases:

Alisha, Droitwich Spa, Worcestershire,

Subsequent to lengthy negotiations with the landlord of her ground floor apartment in Droitwich Spa, Alisha commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was finalised in May 2007. The freeholder’s fees were restricted to less than 450 GBP.

Droitwich Spa case:

Last Winter we were contacted by Dr Finn Moore , who was assigned a lease of a studio apartment in Droitwich Spa in March 1997. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable premises in Droitwich Spa with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish in 2097. Taking into account 71 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.

Droitwich Spa case:

Last year we were approach by Dr F Cox , who was assigned a lease of a recently refurbished apartment in Droitwich Spa in July 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Droitwich Spa with a long lease were worth £254,200. The average ground rent payable was £60 collected annually. The lease elapsed on 21 October 2077. Taking into account 51 years left we calculated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including expenses.