Why you should commence your Goring lease extension

Top reasons for lease extension now:

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

Goring residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.

An extended lease is almost the same value as a freehold

Leasehold properties in Goring with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This will be problematic as and when you come to market or refinance your flat as it will be effectively unmortgageable. Even though you might not have an imminent plan to sell but when you do your purchaser must hold off for two years before they can exercise the right to a an extension to the lease.

Why use us for your lease extension in Goring?

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

Goring Lease Extension Example Cases:

Luca, Goring, Oxfordshire

Last Autumn Luca, started to get close to the eighty-year threshold with the lease on his garden apartment in Goring. Having bought his property two decades ago, the lease term was of minimal interest. As luck would have it, he realised he needed to take steps soon on Extending the lease. Luca extended the lease just under the wire in April. Luca and the freeholder eventually agreed on sum of £5,500 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £1,125.

Goring case:

Last Autumn we were approach by Mr O Campbell , who bought a basement apartment in Goring in August 2012. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative flats in Goring with a long lease were valued about £260,200. The average ground rent payable was £65 invoiced per annum. The lease terminated in 2092. Taking into account 66 years outstanding we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of legals.

Goring case:

In 2009 we were called by Mrs Emma Adams who, having completed a one bedroom flat in Goring in January 2009. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Goring with a long lease were worth £198,800. The average ground rent payable was £55 collected every twelve months. The lease ended in 2081. Considering the 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus professional charges.