Top reasons for Godalming lease extension

Top reasons for lease extension now:

A Godalming lease depreciates with the years remaining on the lease.

For those whose Godalming property is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold premises in Godalming with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to grant a mortgage with a short lease

Most mortgage lenders have tightened lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be deficient security.

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

The conveyancers that we work with undertake Godalming 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 lawyer we work with provide it.

Godalming Lease Extension Example Cases:

Erin, Godalming, Surrey,

After lengthy correspondence with the landlord of her leasehold flat in Godalming, Erin commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction was concluded in October 2010. The landlord’s costs were negotiated to a tad over 700 GBP.

Godalming case:

In 2009 we were e-mailed by Mr Luca Gunderson who, having completed a recently refurbished apartment in Godalming in May 2004. The question was if we could approximate the price would be to prolong the lease by an additional years. Identical properties in Godalming with 100 year plus lease were valued around £233,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease came to a finish in 2087. Considering the 61 years remaining we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including expenses.

Godalming case:

Last Spring we were phoned by Dr Jordan King , who owned a one bedroom flat in Godalming in February 2006. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Godalming with 100 year plus lease were in the region of £166,800. The mid-range amount of ground rent was £50 invoiced annually. The lease expiry date was on 5 April 2076. Having 50 years left we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.