Why you should commence your Droitwich lease extension

Why you should commence your Droitwich lease extension today:

A Droitwich lease depreciates with the years remaining on the lease.

The only way is down when it comes to Droitwich lease terms. Droitwich leaseholds that have a residual term shorter than eighty years will de-escalate in market price at a rapid rate, and the cost of extending your lease will go up.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lending institutions will not loan monies with a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are regarded as deficient for lending purposes.

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

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

Droitwich Lease Extension Example Cases:

Sarah, Droitwich, Worcestershire,

In the wake of 6 months of unsuccessful negotiations with the landlord of her studio flat in Droitwich, Sarah commenced the lease extension process as the 80 year mark was fast nearing. The lease extension was concluded in March 2008. The freeholder’s charges were negotiated to below 500 GBP.

Droitwich case:

In 2009 we were approached by Mr and Mrs. N Bailey who, having moved into a purpose-built apartment in Droitwich in April 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Droitwich with a long lease were valued around £220,400. The average ground rent payable was £45 invoiced monthly. The lease came to a finish in 2090. Having 64 years remaining we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including fees.

Droitwich case:

Mr Reuben Watson purchased a one bedroom flat in Droitwich in July 2006. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable premises in Droitwich with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish in 2101. Having 75 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.