Top reasons for Keynsham lease extension

Top reasons for lease extension now:

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

With a long leasehold premises in Keynsham, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years left. Residents in Keynsham with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. Once the lease term has under eighty years outstanding, under the relevant Act the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold residencies in Keynsham with in excess of 100 years remaining 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may decide not to loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This may be problematic once you wish to market or refinance your property as it will be effectively unmortgageable. You might not have an immediate plan to sell but when you do your purchaser will need to wait two years before they can exercise the right to a an extension to the lease.

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

Irrespective of whether you are a tenant or a freeholder in Keynsham,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 Keynsham valuers.

Keynsham Lease Extension Case Summaries:

Naomi, Keynsham, North Somerset,

Following protracted correspondence with the landlord of her two bedroom apartment in Keynsham, Naomi initiated the lease extension process as the 80 year mark was rapidly advancing. The transaction was concluded in February 2007. The landlord’s fees were restricted to slightly above 500 GBP.

Keynsham case:

Last Christmas we were approach by Dr W Peterson , who acquired a newly refurbished flat in Keynsham in June 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar homes in Keynsham with a long lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish in 2085. Considering the 59 years remaining we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.

Keynsham case:

Last month we were called by Mr and Mrs. W Flores , who was assigned a lease of a first floor apartment in Keynsham in October 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Keynsham with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced per annum. The lease expired on 13 May 2096. Considering the 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 not including professional charges.