Why you should start your Gotham lease extension

Why you should start your Gotham lease extension today:

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

The value of Gotham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is below than eighty years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Gotham with more than one hundred 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 to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions will not grant a mortgage with a short lease

Mortgage companies are really clamping down as regards to properties in Gotham with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus restricting the number of potential purchasers.

Why use us for your lease extension in Gotham?

Engaging our service will provide you enhanced control over the value of your Gotham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Gotham Lease Extension Case Summaries:

Benjamin, Gotham, Nottinghamshire

In recent months Benjamin, started to get close to the 80-year threshold with the lease on his studio flat in Gotham. In buying his home two decades ago, the length of the lease was of little interest. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Benjamin extended the lease just under the wire in May. Benjamin and the freeholder in the end settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have become more costly by at least £850.

Gotham case:

Mrs Caitlin Collins acquired a one bedroom flat in Gotham in March 2006. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical premises in Gotham with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 billed yearly. The lease ended on 16 September 2085. Considering the 59 years outstanding we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.

Gotham case:

In 2013 we were approached by Mr and Mrs. M Petit who, having owned a first floor apartment in Gotham in March 2008. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Gotham with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish on 6 May 2096. Given that there were 70 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.