Main reasons to start your Earls Barton lease extension

Main reasons to start your Earls Barton lease extension today:

A Earls Barton leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Earls Barton is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised well before the 80 year cut off point. Statute enables Earls Barton qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders may decide not to grant a mortgage with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Earls Barton lease extensions?

Engaging our service gives you increased control over the value of your Earls Barton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Earls Barton Lease Extension Example Cases:

Oscar, Earls Barton, Northamptonshire,

Oscar owned a studio flat in Earls Barton on the market with a lease of fraction over 61 years remaining. Oscar informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.

Earls Barton case:

Last January we were contacted by Ms A Khan , who purchased a one bedroom flat in Earls Barton in January 2000. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable flats in Earls Barton with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 collected quarterly. The lease came to a finish on 21 July 2089. Having 63 years as a residual term we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including fees.

Earls Barton case:

Mr and Mrs. I Howard was assigned a lease of a one bedroom apartment in Earls Barton in May 2002. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparable flats in Earls Barton with a long lease were worth £265,000. The average amount of ground rent was £55 collected yearly. The lease elapsed on 20 April 2100. Considering the 74 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.