Why you should start your Farnham Common lease extension

Top reasons for lease extension now:

Increase your lease and increase your Farnham Common property value

It’s a harsh truth that a Farnham Common residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Farnham Common property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Farnham Common will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.

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

It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not grant a mortgage on a short lease

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Retaining our service gives you enhanced control over the value of your Farnham Common leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Farnham Common Lease Extension Case Studies:

Gabriel, Farnham Common, Buckinghamshire,

Gabriel owned a studio flat in Farnham Common on the market with a lease of just over fifty eight years remaining. Gabriel on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and secured satisfactory resolution without going to tribunal and sell the flat.

Farnham Common case:

Last Spring we were phoned by Mr James Sharif , who completed a first floor flat in Farnham Common in February 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Farnham Common with a long lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 10 October 2098. Given that there were 72 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.

Farnham Common case:

Last month we were contacted by Mr and Mrs. M García , who acquired a ground floor apartment in Farnham Common in April 2008. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Farnham Common with a long lease were in the region of £261,600. The average ground rent payable was £60 billed every twelve months. The lease elapsed in 2078. Having 52 years outstanding we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of expenses.