Main reasons to commence your Gosport lease extension

Top reasons for lease extension now:

Increase your lease and increase your Gosport property value

There is no doubt about it a leasehold property in Gosport is a wasting asset as a result of the shortening lease. Where the lease has, over 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Gosport will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Gosport with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.

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

Almost all mortgage lenders will not grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Gosport property being difficult to sell or to obtain finance on.

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

Regardless of whether you are a tenant or a freeholder in Gosport,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gosport valuers.

Gosport Lease Extension Case Studies:

Aaron, Gosport, Hampshire,

Aaron was the the leasehold proprietor of a conversion flat in Gosport on the market with a lease of a little over 59 years unexpired. Aaron informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aaron to invoke his statutory right. Aaron procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.

Gosport case:

In 2012 we were e-mailed by Mr and Mrs. V Robinson who, having acquired a basement apartment in Gosport in September 1996. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Gosport with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 collected annually. The lease expired in 2104. Having 78 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.

Gosport case:

In 2011 we were called by Dr N Rogers who, having was assigned a lease of a basement apartment in Gosport in February 1999. The question was if we could approximate the price could be for a ninety year lease extension. Similar homes in Gosport with a long lease were in the region of £267,600. The average ground rent payable was £65 billed quarterly. The lease concluded on 7 September 2093. Considering the 67 years remaining we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of costs.