Main reasons to start your Freshwater lease extension

Main reasons to commence your Freshwater lease extension today:

Increase your lease and increase your Freshwater property value

Freshwater leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Freshwater enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Freshwater you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Freshwater flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay

Freshwater property with a lease extension is almost the same value as a freehold

Leasehold residencies in Freshwater with more than 100 years unexpired on the lease are sometimes referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic when you wish to dispose of or remortgage your property as it will be practically unmortgageable. Even though you may have no imminent plan to sell but when you do your purchaser will have to hold off for 2 years before being able to commence the legal procedures for a lease extension.

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

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

Freshwater Lease Extension Case Summaries:

Gemma, Freshwater, Isle Of Wight,

After unsuccessful negotiations with the landlord of her two bedroom apartment in Freshwater, Gemma started the lease extension process as the 80 year deadline was quickly coming. The lease extension was finalised in November 2009. The freeholder’s costs were negotiated to below 500 pounds.

Freshwater case:

In 2013 we were e-mailed by Dr Jude Walker who, having acquired a ground floor flat in Freshwater in June 1997. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar properties in Freshwater with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 billed yearly. The lease elapsed in 2079. Having 53 years unexpired we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including professional charges.

Freshwater case:

In 2010 we were contacted by Mr and Mrs. W Martin who, having acquired a studio flat in Freshwater in April 2007. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Freshwater with an extended lease were in the region of £225,400. The average ground rent payable was £45 invoiced yearly. The lease termination date was in 2090. Having 64 years remaining we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including professional charges.