Top reasons for Eynsham lease extension

Why you should start your Eynsham lease extension today:

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

Unfortunately that a Eynsham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Eynsham property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Eynsham will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Eynsham with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies will not grant a mortgage on a short lease

Most mortgage lenders have tightened 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 under seventy years as they are regarded as inadequate for lending purposes.

What makes us experts in Eynsham lease extensions?

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

Eynsham Lease Extension Case Summaries:

Eliot, Eynsham, Oxfordshire

Two years ago Eliot, came dangerously close to the 80-year threshold with the lease on his garden apartment in Eynsham. In buying his home 19 years ago, the lease term was of no significance. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Eliot was able to extend his lease just under the wire in April. Eliot and the landlord in the end agreed on the final figure of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £850.

Eynsham case:

Mr and Mrs. H Clark acquired a studio apartment in Eynsham in April 2005. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable properties in Eynsham with an extended lease were valued around £295,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 20 April 2100. Taking into account 74 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.

Eynsham case:

Dr Ethan Wilson was assigned a lease of a garden apartment in Eynsham in November 2006. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Eynsham with a long lease were valued around £243,000. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish on 12 November 2089. Having 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.