Why you should start your Lechlade lease extension

Why you should commence your Lechlade lease extension today:

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

The nearer a domestic lease in Lechlade gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left 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 primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Lechlade will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

Leasehold premises in Lechlade with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become jittery at around 75 years. This may be problematic once you need to sell or remortgage your property as it will be practically unmortgageable. You may not have an immediate intention to sell but when you do your purchaser will need to hold off for 2 years before they can start the legal procedures for a lease extension.

Why use us for your lease extension in Lechlade?

Irrespective of whether you are a tenant or a freeholder in Lechlade,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 experience and the close ties they enjoy with Lechlade valuers.

Lechlade Lease Extension Example Cases:

Jamie, Lechlade, Gloucestershire,

Jamie owned a 2 bedroom flat in Lechlade on the market with a lease of fraction over sixty years outstanding. Jamie informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

Lechlade case:

Mr Andrew Thomas bought a basement apartment in Lechlade in May 1998. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Lechlade with an extended lease were in the region of £200,800. The average amount of ground rent was £65 collected monthly. The lease ran out on 8 March 2086. Given that there were 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including professional charges.

Lechlade case:

In 2011 we were contacted by Mr and Mrs. B Leroy who, having completed a recently refurbished apartment in Lechlade in September 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Lechlade with a long lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish on 1 November 2097. Taking into account 71 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.