Top reasons for Freshford lease extension

Why you should start your Freshford lease extension today:

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

With a long leasehold property in Freshford, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years left. Leasehold owners in Freshford with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has below eighty years outstanding, under the current statute the freeholder can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lending institutions may decide not to finance a property with a short lease

Many mortgage companies require a lengthy amount of time left on a leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should be mindful that it is likely that someone wanting to buy your property in the future might well do, so where they are not able to secure a mortgage, then the value of the property will likely be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to accept

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

Irrespective of whether you are a tenant or a landlord in Freshford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Freshford valuers.

Freshford Lease Extension Case Studies:

Abigail, Freshford, North Somerset,

Subsequent to protracted discussions with the freeholder of her ground floor apartment in Freshford, Abigail commenced the lease extension process just as her lease was approaching the all-important 80-year deadline. The lease extension completed in September 2008. The freeholder’s charges were restricted to slightly above 650 GBP.

Freshford case:

In 2013 we were phoned by Mr V Girard who, having was assigned a lease of a garden flat in Freshford in February 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Freshford with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ended in 2104. Considering the 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.

Freshford case:

Last month we were contacted by Mrs Millie Anderson , who purchased a garden flat in Freshford in March 2009. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar premises in Freshford with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 collected quarterly. The lease ended on 12 October 2093. Considering the 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.