Top reasons for Highworth lease extension

Main reasons to commence your Highworth lease extension today:

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

The closer a domestic lease in Highworth nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years remaining 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. Most flat owners in Highworth will qualify for this right; that being said a lawyer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Highworth property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.

Lending institutions will not loan monies on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly under 75 years as they are regarded as deficient for lending purposes.

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

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

Highworth Lease Extension Case Summaries:

Niamh, Highworth, Wiltshire,

Subsequent to unsuccessful negotiations with the landlord of her two bedroom apartment in Highworth, Niamh initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction completed in September 2015. The landlord’s costs were restricted to about 550 pounds.

Highworth case:

In 2012 we were phoned by Mrs Abigail Dupont who, having took over the lease of a basement flat in Highworth in March 1999. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Highworth with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded on 25 September 2097. Given that there were 71 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.

Highworth case:

Last Autumn we were approach by Mr and Mrs. I Ali , who took over the lease of a one bedroom flat in Highworth in September 2003. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Highworth with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 billed monthly. The lease lapsed on 3 October 2077. Having 51 years left we calculated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 not including costs.