Top reasons for Easton lease extension

Why you should start your Easton lease extension today:

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

When it comes to long leasehold premises in Easton, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Easton with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years remaining, under the current statute the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold residencies in Easton with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may not loan monies with a short lease

Lenders are making their criteria more stringent and many now want flats to have a minimum of 60 if not 70 years remaining at the expiry of the mortgage. As plenty of flats in Easton were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Easton lease extensions?

Irrespective of whether you are a tenant or a landlord in Easton,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 Easton valuers.

Easton Lease Extension Case Studies:

Yasmin, Easton, Bristol,

In the wake of 9 months of lengthy negotiations with the freeholder of her two bedroom apartment in Easton, Yasmin initiated the lease extension process as the 80 year threshold was quickly advancing. The transaction completed in January 2008. The freeholder’s fees were negotiated to a tad over 450 GBP.

Easton case:

Last month we were called by Mr and Mrs. H Howard , who moved into a studio apartment in Easton in April 2005. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable premises in Easton with an extended lease were worth £227,800. The average amount of ground rent was £45 billed yearly. The lease lapsed in 2091. Having 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.

Easton case:

In 2012 we were e-mailed by Mr and Mrs. F Wright who, having bought a one bedroom flat in Easton in September 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Easton with an extended lease were valued around £270,000. The average ground rent payable was £55 collected yearly. The lease expired in 2102. Taking into account 76 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.