Why you should start your Earley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Earley property value

Earley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Earley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Earley you really ought to investigate if your lease has between seventy and ninety years left. There are good reasons why a Earley flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay

Earley property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may not finance a property with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This will cause difficulties as and when you come to sell or remortgage your flat as it will be effectively unmortgageable. You may not have an imminent plan to sell but when you do your purchaser will have to wait two years before they can commence the legal procedures for a lease extension.

What makes us experts in Earley lease extensions?

Using our service gives you better control over the value of your Earley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Earley Lease Extension Example Cases:

Freddie, Earley, Berkshire

Half a year ago Freddie, came seriously near to the eighty-year threshold with the lease on his two bedroom apartment in Earley. In buying his property two decades ago, the unexpired term was of no importance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Freddie was able to extend his lease just under the wire last June. Freddie and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If the lease had slipped to less than 80 years, the amount would have increased by at least £1,000.

Earley case:

In 2011 we were approached by Mr Dylan Anderson who, having completed a basement flat in Earley in May 2009. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable flats in Earley with a long lease were worth £171,800. The mid-range amount of ground rent was £55 collected yearly. The lease ran out on 5 November 2076. Taking into account 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including expenses.

Earley case:

Mr and Mrs. G François owned a first floor flat in Earley in May 1997. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Earley with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 collected monthly. The lease expiry date was on 13 May 2096. Considering the 70 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.