Why you should start your Horncastle lease extension

Top reasons for lease extension now:

Increase your lease and increase your Horncastle property value

There is no doubt about it a leasehold property in Horncastle is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner rather than later. Many flat owners in Horncastle will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Horncastle with more than 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies will not issue a mortgage on a short lease

Mortgage companies are inclined not lend on short residential leases. You most probably encounter problems if you wish to sell your flat in Horncastle if the unexpired term of your lease is less than the criteria set by the majority of lenders. Different mortgage companies have varying requirements but generally theyrequire a minimum remaining lease term of 65 years.

Why use us for your lease extension in Horncastle?

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

Horncastle Lease Extension Case Summaries:

Michael, Horncastle, Lincolnshire,

Michael owned a high value apartment in Horncastle on the market with a lease of fraction over 72 years unexpired. Michael informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and secured an acceptable resolution informally and sell the property.

Horncastle case:

Last Summer we were contacted by Dr F Lefèvre , who bought a one bedroom apartment in Horncastle in March 2006. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Horncastle with an extended lease were valued about £200,800. The average amount of ground rent was £65 invoiced quarterly. The lease expiry date was in 2086. Taking into account 60 years left we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus legals.

Horncastle case:

Last Christmas we were contacted by Mr I Nelson , who completed a first floor flat in Horncastle in April 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Horncastle with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out on 13 October 2097. Having 71 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.