Why you should commence your Leominster lease extension

Why you should commence your Leominster lease extension today:

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

As the length of the unexpired term of a Leominster domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Many flat owners in Leominster will qualify for this right; however a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

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

Leasehold properties in Leominster with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders will not loan monies with a short lease

Banks and building societies are really clamping down as regards to homes in Leominster with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing your market.

What makes us experts in Leominster lease extensions?

Using our service will provide you enhanced control over the value of your Leominster leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Leominster Lease Extension Case Studies:

Rory, Leominster, Herefordshire

In 2014 Rory, came precariously close to the 80-year mark with the lease on his basement flat in Leominster. In buying his flat two decades ago, the length of the lease was of minimal bearing. Fortunately, he recognised he needed to take action soon on a lease extension. Rory was able to extend his lease at the eleventh hour in May. Rory and the freeholder via the management company ultimately agreed on sum of £6,000 . If he not met the deadline, the sum would have increased by a minimum £1,150.

Leominster case:

In 2010 we were e-mailed by Mr and Mrs. K Bonnet who, having owned a ground floor apartment in Leominster in August 2010. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable properties in Leominster with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2090. Given that there were 64 years remaining we estimated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus legals.

Leominster case:

Last Summer we were phoned by Dr E Simon , who acquired a purpose-built apartment in Leominster in November 2005. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparable flats in Leominster with a long lease were valued about £184,000. The average ground rent payable was £55 invoiced monthly. The lease finished on 10 April 2079. Considering the 53 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.