Why you should commence your Farnham lease extension

Main reasons to start your Farnham lease extension today:

Increase your lease and increase your Farnham property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Farnham. Clearly, the period of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Farnham have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Farnham lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold premises in Farnham with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not loan monies on a short lease

Mortgage companies do not like short residential leases. You are likely to experience difficulties where you need to sell your flat in Farnham if the unexpired term of your lease is below the criteria set by most banks and building societies. Different mortgage companies have varying requirements but in the main they are looking for an unexpired term of at least seventy years.

Why use us for your lease extension in Farnham?

Retaining our service gives you increased control over the value of your Farnham 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Farnham Lease Extension Case Studies:

Omar, Farnham, Surrey

Last year Omar, came dangerously close to the 80-year threshold with the lease on his purpose- built apartment in Farnham. Having bought his property 18 years previously, the lease term was of no significance. Thankfully, he noticed he needed to take action soon on Extending the lease. Omar was able to extend his lease just under the wire last July. Omar and the freeholder via the management company ultimately agreed on a premium of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £975.

Farnham case:

Dr Lauren Bell acquired a garden apartment in Farnham in October 2002. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Farnham with an extended lease were valued about £201,200. The mid-range ground rent payable was £55 invoiced monthly. The lease finished on 15 September 2082. Considering the 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.

Farnham case:

Last Summer we were approach by Mr and Mrs. O Pérez , who acquired a purpose-built apartment in Farnham in October 2011. The question was if we could estimate the premium would be to prolong the lease by an additional years. Similar flats in Farnham with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed per annum. The lease ran out in 2102. Taking into account 76 years left we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.