Top reasons for Farnham Common lease extension

Main reasons to start your Farnham Common lease extension today:

A Farnham Common leasehold property depreciates with the years remaining on the lease.

It’s a harsh certainty 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 taken for granted in the early years due to the loss of value being disguised by increases in the Farnham Common property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls under eighty 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. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Farnham Common will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.

Farnham Common property with a lease extension is almost the same value as a freehold

Leasehold properties in Farnham Common with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may not lend on a short lease

Banks and Building Societies have set criteria when loaning monies secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term falls below a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years as acceptable security. As well as this being important when selling, it is also relevant if you are seeking to remortgage your Farnham Common property.

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

Lease extensions in Farnham Common can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Farnham Common lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Farnham Common Lease Extension Example Cases:

Rebecca, Farnham Common, Buckinghamshire,

Following protracted correspondence with the landlord of her studio flat in Farnham Common, Rebecca initiated the lease extension process as the eighty year mark was rapidly nearing. The lease extension completed in August 2010. The freeholder’s costs were negotiated to below 550 pounds.

Farnham Common case:

Mr and Mrs. S Girard completed a ground floor flat in Farnham Common in July 1999. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparable homes in Farnham Common with a long lease were in the region of £186,000. The average ground rent payable was £65 invoiced monthly. The lease expired in 2084. Taking into account 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £26,600 and £30,800 plus expenses.

Farnham Common case:

Mr and Mrs. N Dupont moved into a newly refurbished flat in Farnham Common in February 2012. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Farnham Common with a long lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease end date was on 26 October 2094. Given that there were 68 years left we estimated the premium to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of fees.