Main reasons to start your Edith Weston lease extension

Top reasons for lease extension now:

A Edith Weston leasehold property depreciates with the years remaining on the lease.

With a domestic leasehold property in Edith Weston, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Edith Weston with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below eighty years remaining, under the relevant legislation the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to loan monies on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders were content with 25 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 use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Edith Weston?

Regardless of whether you are a tenant or a freeholder in Edith Weston,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Edith Weston valuers.

Edith Weston Lease Extension Case Studies:

Samuel, Edith Weston, Rutland

In 2014 Samuel, started to get close to the eighty-year mark with the lease on his basement apartment in Edith Weston. In buying his flat two decades ago, the length of the lease was of no relevance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Samuel was able to extend his lease at the eleventh hour last January. Samuel and the freeholder via the managing agents eventually settled on the final figure of £5,000 . If the lease had descended below 80 years, the amount would have increased by at least £1,075.

Edith Weston case:

Last Summer we were approach by Mr Y Martin , who owned a first floor apartment in Edith Weston in July 2009. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical flats in Edith Weston with a long lease were in the region of £186,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed in 2084. Taking into account 58 years remaining we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 plus fees.

Edith Weston case:

Mr and Mrs. L Roux bought a basement flat in Edith Weston in January 2008. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical properties in Edith Weston with a long lease were worth £250,000. The average ground rent payable was £50 invoiced monthly. The lease elapsed in 2095. Given that there were 69 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.