Main reasons to commence your Lacock lease extension

Top reasons for lease extension now:

A Lacock lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Lacock is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that all matters can be concluded well before the 80 year cut off point. Current legislation enables Lacock qualifying lessees to an additional term of 90 years on top of the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Lacock with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may not finance a property on a short lease

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

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

Lacock Lease Extension Case Summaries:

Francesca, Lacock, Wiltshire,

After lengthy negotiations with the landlord of her purpose-built flat in Lacock, Francesca started the lease extension process as the eighty year mark was rapidly approaching. The legal work was concluded in March 2014. The landlord’s charges were kept to an absolute minimum.

Lacock case:

Dr Blake Cook acquired a studio flat in Lacock in January 1998. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical premises in Lacock with a long lease were worth £208,600. The average amount of ground rent was £60 collected yearly. The lease concluded in 2083. Considering the 57 years left we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.

Lacock case:

Mr and Mrs. I Hernández completed a first floor apartment in Lacock in April 2005. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable flats in Lacock with an extended lease were valued about £200,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed in 2103. Having 77 years left we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.