Main reasons to start your Ellesmere lease extension

Main reasons to commence your Ellesmere lease extension today:

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

The market value of a leasehold property in Ellesmere is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be concluded prior to the eighty year mark. Statute entitles Ellesmere qualifying lessees to an additional term of 90 years on top of the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.

Lenders may not lend with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to get jittery at around 75 years. This will be problematic as and when you need to sell or remortgage your property as it will be practically unmortgageable. Even though you may not have an imminent plan to sell but when you do your buyer will need to hold off for 2 years before being able to exercise the right to a an extension to the lease.

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

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

Ellesmere Lease Extension Case Studies:

Elizabeth, Ellesmere, Shropshire,

Subsequent to unsuccessful discussions with the freeholder of her two bedroom flat in Ellesmere, Elizabeth commenced the lease extension process as the 80 year deadline was quickly advancing. The legal work completed in September 2012. The freeholder’s fees were kept to an absolute minimum.

Ellesmere case:

Last Summer we were contacted by Mr Milo Gunderson , who acquired a ground floor apartment in Ellesmere in August 2003. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Similar homes in Ellesmere with a long lease were worth £280,000. The average ground rent payable was £55 billed yearly. The lease ended in 2103. Considering the 77 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.

Ellesmere case:

Mr and Mrs. F Lefèvre owned a first floor flat in Ellesmere in March 2005. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable premises in Ellesmere with a long lease were worth £183,600. The average ground rent payable was £65 collected annually. The lease expired in 2083. Considering the 57 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.