Top reasons for Fleet lease extension

Why you should commence your Fleet lease extension today:

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

Unfortunately that a Fleet residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Fleet property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Most flat owners in Fleet will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

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

It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not grant a mortgage with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Fleet lease extensions?

Irrespective of whether you are a tenant or a freeholder in Fleet,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fleet valuers.

Fleet Lease Extension Example Cases:

Ryan, Fleet, Hampshire,

Ryan owned a 2 bedroom flat in Fleet being sold with a lease of just over sixty years left. Ryan informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.

Fleet case:

Last Spring we were phoned by Mr N Smith , who moved into a ground floor flat in Fleet in August 2007. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical premises in Fleet with an extended lease were worth £206,200. The mid-range ground rent payable was £60 billed per annum. The lease termination date was in 2082. Taking into account 56 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.

Fleet case:

Ms O Collins completed a purpose-built flat in Fleet in April 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Fleet with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated in 2102. Taking into account 76 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.