Main reasons to start your Fareham lease extension

Main reasons to commence your Fareham lease extension today:

A Fareham leasehold property depreciates with the years remaining on the lease.

The value of Fareham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is below than eighty years

Fareham property with a lease extension has roughly the same value as a freehold

Leasehold properties in Fareham with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not grant a mortgage with a short lease

Most banks 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 under seventy years as they are regarded as unacceptable for lending purposes.

What makes us experts in Fareham lease extensions?

Regardless of whether you are a tenant or a landlord in Fareham,the lease extension lawyers 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 Fareham valuers.

Fareham Lease Extension Example Cases:

Nathaniel, Fareham, Hampshire,

Nathaniel owned a studio flat in Fareham being sold with a lease of just over 72 years outstanding. Nathaniel informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.

Fareham case:

Mrs A Adams completed a recently refurbished flat in Fareham in September 2010. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Fareham with an extended lease were worth £280,000. The average ground rent payable was £45 billed yearly. The lease finished in 2096. Considering the 70 years remaining we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.

Fareham case:

In 2010 we were contacted by Mr S Robinson who, having bought a ground floor flat in Fareham in April 1996. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Fareham with 100 year plus lease were valued about £223,400. The average amount of ground rent was £60 billed every twelve months. The lease terminated on 2 February 2085. Considering the 59 years remaining we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 plus costs.