Top reasons for Guildford lease extension

Main reasons to start your Guildford lease extension today:

Increase your lease and increase your Guildford property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Guildford. Clearly, the length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Guildford have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before putting off your Guildford lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold residencies in Guildford with over one hundred years remaining on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not issue a mortgage on a short lease

Many banks and building societies will not lend on a lease with less than 70 years remaining - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Guildford property becoming difficult to sell or to obtain finance on.

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

Regardless of whether you are a tenant or a landlord in Guildford,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 in-depth market knowledge and the close ties they enjoy with Guildford valuers.

Guildford Lease Extension Case Summaries:

Lauren, Guildford, Surrey,

Following protracted discussions with the freeholder of her one bedroom apartment in Guildford, Lauren initiated the lease extension process as the 80 year mark was swiftly nearing. The legal work was finalised in September 2013. The landlord’s costs were negotiated to a tad over 600 pounds.

Guildford case:

Mr Toby Gómez completed a ground floor apartment in Guildford in November 1999. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical homes in Guildford with 100 year plus lease were valued around £181,600. The average amount of ground rent was £55 billed yearly. The lease ended in 2078. Considering the 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus fees.

Guildford case:

Last month we were approach by Mr Freddie Williams , who owned a studio flat in Guildford in February 2012. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Guildford with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease concluded in 2098. Considering the 72 years remaining we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.