Why you should commence your Fawley lease extension

Top reasons for lease extension now:

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

The closer a residential lease in Fawley gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 99 years to run then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Fawley will qualify for this right; however a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Fawley with in excess of 100 years unexpired 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not issue a mortgage with a short lease

Banks and building societies are distinct in their lending criteria. Some draw the line at seventy five years remaining on the lease; others may be prepared to lend with anything with more than 70 years. With less than sixty years, it may be impossible to get a mortgage in the first place.

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

The lawyers that we work with procure Fawley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Fawley Lease Extension Case Studies:

Rhiannon, Fawley, Hampshire,

Off the back of unsuccessful negotiations with the landlord of her studio flat in Fawley, Rhiannon commenced the lease extension process as the 80 year deadline was fast nearing. The transaction was finalised in March 2011. The freeholder’s costs were restricted to less than six hundred GBP.

Fawley case:

Last Christmas we were e-mailed by Dr Louise Thompson , who acquired a one bedroom apartment in Fawley in November 2011. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable flats in Fawley with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 billed quarterly. The lease finished in 2078. Considering the 52 years remaining we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.

Fawley case:

In 2014 we were contacted by Mr and Mrs. M López who, having took over the lease of a garden apartment in Fawley in November 2007. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical properties in Fawley with 100 year plus lease were worth £285,000. The average ground rent payable was £45 invoiced quarterly. The lease ended in 2098. Taking into account 72 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.