Top reasons for Eccleshall lease extension

Why you should commence your Eccleshall lease extension today:

Increase your lease and increase your Eccleshall property value

The value of Eccleshall 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 escalate materialy once the remaining term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold properties in Eccleshall with more than one hundred years outstanding 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 upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Lenders will not grant a mortgage on a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Eccleshall lease extensions?

Irrespective of whether you are a tenant or a freeholder in Eccleshall,the lease extension experts 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 Eccleshall valuers.

Eccleshall Lease Extension Example Cases:

Eli, Eccleshall, Staffordshire

During the course of the last few months Eli, came dangerously near to the eighty-year threshold with the lease on his basement flat in Eccleshall. In buying his home 18 years previously, the lease term was of minimal importance. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Eli arranged for a lease extension at the eleventh hour in March. Eli and the freeholder subsequently settled on the final figure of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £900.

Eccleshall case:

Last Summer we were phoned by Dr E Gómez , who purchased a studio flat in Eccleshall in May 2006. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Eccleshall with an extended lease were in the region of £191,400. The average amount of ground rent was £55 invoiced annually. The lease concluded on 12 November 2080. Considering the 54 years remaining we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of costs.

Eccleshall case:

Last Spring we were phoned by Mr and Mrs. V Watson , who moved into a first floor flat in Eccleshall in June 2010. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Eccleshall with a long lease were in the region of £295,000. The average ground rent payable was £45 collected annually. The lease ran out in 2100. Having 74 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.