Why you should start your Freshwater Bay lease extension

Top reasons for lease extension now:

Increase your lease and increase your Freshwater Bay property value

It’s a harsh truth that a Freshwater Bay 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 first few years due to the reduction being disguised by increases in the Freshwater Bay property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Freshwater Bay will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm 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 conveyancing solicitor for the duration of the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not finance a property on a short lease

Most banks and building societies insist on a lengthy amount of time left on a leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is reasonable to assume that someone wanting to acquire your property in the future might well do, so if they are not able to obtain a mortgage, then the value of the property will likely be adversely impacted. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

Why use us for your lease extension in Freshwater Bay?

Lease extensions in Freshwater Bay can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 a wealth of experience dealing with Freshwater Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Freshwater Bay Lease Extension Example Cases:

Aimee, Freshwater Bay, Isle Of Wight,

Trailing unsuccessful discussions with the landlord of her garden apartment in Freshwater Bay, Aimee commenced the lease extension process just as her lease was approaching the critical 80-year threshold. The transaction completed in July 2009. The freeholder’s charges were restricted to about four hundred pounds.

Freshwater Bay case:

Last Autumn we were approach by Mr and Mrs. L Green , who owned a first floor apartment in Freshwater Bay in October 2011. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Freshwater Bay with a long lease were worth £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease terminated on 4 February 2094. Taking into account 68 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.

Freshwater Bay case:

Last year we were called by Mr and Mrs. V Robinson , who took over the lease of a studio flat in Freshwater Bay in May 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Freshwater Bay with 100 year plus lease were valued around £208,600. The average ground rent payable was £60 collected every twelve months. The lease ended in 2083. Taking into account 57 years remaining we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including fees.