Top reasons for Emersons Green lease extension

Top reasons for lease extension now:

A Emersons Green lease depreciates with the years remaining on the lease.

The only way is down when it comes to Emersons Green lease terms. Emersons Green leaseholds that have a remaining term fewer than eighty years will drop in value even faster, and the cost of extending your lease will go up.

An extended lease has roughly the same value as a freehold

Leasehold properties in Emersons Green with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may not loan monies on a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are deemed to be deficient for lending purposes.

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

The lawyers that we work with handle Emersons Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Emersons Green Lease Extension Example Cases:

Luke, Emersons Green, Gloucestershire,

Luke owned a studio flat in Emersons Green being sold with a lease of just over fifty eight years unexpired. Luke on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Emersons Green case:

Dr Theo Taylor completed a first floor flat in Emersons Green in March 2007. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Similar flats in Emersons Green with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2105. Considering the 79 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.

Emersons Green case:

Last Spring we were approach by Mr N Martin , who owned a purpose-built apartment in Emersons Green in February 1997. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative premises in Emersons Green with a long lease were valued about £275,000. The average amount of ground rent was £65 billed per annum. The lease expired on 7 November 2094. Having 68 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.