Why you should start your Dulverton lease extension

Why you should commence your Dulverton lease extension today:

Increase your lease and increase your Dulverton property value

The market value of Dulverton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than eighty years

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not issue a mortgage on a short lease

Mortgage lenders have specific criteria when loaning monies secured on leasehold homes. Many will simply refuse lend at all once an unexpired lease term slips beneath a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to refinance your Dulverton home.

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

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

Dulverton Lease Extension Example Cases:

Harry, Dulverton, Somerset

14 months ago Harry, started to get near to the 80-year threshold with the lease on his one bedroom flat in Dulverton. In buying his flat 19 years previously, the length of the lease was of minimal importance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Harry extended the lease at the eleventh hour last August. Harry and the freeholder subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £1,075.

Dulverton case:

In 2011 we were approached by Mr and Mrs. C Lefèvre who, having bought a studio flat in Dulverton in October 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative residencies in Dulverton with a long lease were in the region of £193,400. The average ground rent payable was £65 billed every twelve months. The lease concluded on 22 February 2085. Taking into account 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus legals.

Dulverton case:

In 2013 we were phoned by Mrs Stephanie Sánchez who, having was assigned a lease of a studio apartment in Dulverton in April 2000. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Dulverton with an extended lease were worth £255,000. The average amount of ground rent was £50 collected yearly. The lease concluded on 20 August 2096. Considering the 70 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 not including costs.