Why you should commence your Earley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Earley property value

The market value of Earley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than 80 years

Earley property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

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

Mortgage companies are really clamping down as regards to homes in Earley with short leases. For instance you may find that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus reducing the amount of prospective purchasers.

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

Regardless of whether you are a tenant or a freeholder in Earley,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 in-depth market knowledge and the close ties they enjoy with Earley valuers.

Earley Lease Extension Case Studies:

Aiden, Earley, Berkshire,

Aiden was the the leasehold proprietor of a conversion apartment in Earley being sold with a lease of a few days over 72 years left. Aiden informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.

Earley case:

In 2013 we were e-mailed by Mr I Nguyen who, having moved into a garden apartment in Earley in April 2009. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar flats in Earley with an extended lease were in the region of £200,000. The average amount of ground rent was £50 invoiced every twelve months. The lease elapsed in 2103. Considering the 77 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.

Earley case:

In 2012 we were approached by Dr Eli Khan who, having bought a recently refurbished apartment in Earley in February 2010. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Identical homes in Earley with an extended lease were in the region of £265,200. The mid-range ground rent payable was £65 collected every twelve months. The lease ended in 2092. Considering the 66 years left we approximated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of legals.