Top reasons for Drybrook lease extension

Why you should commence your Drybrook lease extension today:

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

Drybrook leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Drybrook tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Drybrook you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Drybrook with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not lend on a short lease

Lenders are tightening their criteria and many now want flats to have at least 60 if not 70 years left at the expiry of the mortgage. Considering many flats in Drybrook were created in the fifties, sixties and seventies as a result many now need to be extended if they wish to obtain a mortgage.

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

Using our service will provide you enhanced control over the value of your Drybrook leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Drybrook Lease Extension Case Studies:

Sam, Drybrook, Gloucestershire

Half a year ago Sam, started to get near to the eighty-year mark with the lease on his garden flat in Drybrook. Having bought his property two decades ago, the length of the lease was of minimal interest. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Sam was able to extend his lease just under the wire last May. Sam and the landlord who owned the flat above subsequently settled on an amount of £5,500 . If the lease had gone to less than 80 years, the price would have gone up by a minimum £925.

Drybrook case:

Mr V Moreau acquired a one bedroom apartment in Drybrook in August 2012. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Similar flats in Drybrook with a long lease were in the region of £216,000. The average amount of ground rent was £60 invoiced monthly. The lease expired on 24 January 2084. Having 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.

Drybrook case:

Last Summer we were approach by Mr Teddy Murphy , who took over the lease of a ground floor flat in Drybrook in July 2008. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Drybrook with a long lease were valued around £205,000. The average amount of ground rent was £50 invoiced per annum. The lease finished on 18 April 2104. Given that there were 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £7,600 and £8,800 not including fees.