Main reasons to commence your Gurnard lease extension

Main reasons to commence your Gurnard lease extension today:

Increase your lease and increase your Gurnard property value

Unfortunately that a Gurnard residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Gurnard property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Gurnard will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.

Gurnard property with a lease extension has roughly the same value as a freehold

Leasehold premises in Gurnard with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to issue a mortgage with a short lease

Most high street banks are making their criteria more stringent and many now require flats to have at least 60 if not 70 years remaining once the mortgage has expired. As a number of flats in Gurnard were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to get a mortgage.

What makes us experts in Gurnard lease extensions?

The lawyers that we work with handle Gurnard 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 conveyancing solicitor we work with provide it.

Gurnard Lease Extension Example Cases:

Georgia, Gurnard, Isle Of Wight,

Following lengthy correspondence with the freeholder of her studio flat in Gurnard, Georgia commenced the lease extension process as the eighty year threshold was quickly approaching. The lease extension was concluded in March 2015. The landlord’s costs were kept to an absolute minimum.

Gurnard case:

In 2012 we were called by Mr and Mrs. A López who, having took over the lease of a ground floor flat in Gurnard in February 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Gurnard with 100 year plus lease were in the region of £166,800. The average ground rent payable was £50 billed quarterly. The lease expired in 2076. Taking into account 50 years as a residual term we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.

Gurnard case:

Last January we were called by Dr Blake Bell , who moved into a garden flat in Gurnard in February 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable residencies in Gurnard with a long lease were valued about £280,000. The average amount of ground rent was £45 collected annually. The lease expiry date was in 2096. Taking into account 70 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.