Why you should start your Long Ashton lease extension

Main reasons to start your Long Ashton lease extension today:

A Long Ashton lease depreciates with the years remaining on the lease.

With a long leasehold premises in Long Ashton, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Anyone in Long Ashton with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years outstanding, under the current legislation the landlord can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is due.

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

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not loan monies with a short lease

The trend since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Long Ashton?

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

Long Ashton Lease Extension Case Studies:

Jake, Long Ashton, North Somerset

In 2014 Jake, started to get close to the eighty-year mark with the lease on his studio apartment in Long Ashton. In buying his home two decades ago, the length of the lease was of no relevance. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Jake extended the lease just under the wire in July. Jake and the freeholder via the management company in the end agreed on sum of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £925.

Long Ashton case:

Last Autumn we were e-mailed by Mr and Mrs. N Gunderson , who was assigned a lease of a first floor flat in Long Ashton in September 1995. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Long Ashton with a long lease were worth £227,800. The average amount of ground rent was £45 invoiced annually. The lease finished in 2091. Having 65 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.

Long Ashton case:

Last year we were approach by Mr and Mrs. H Bernard , who completed a ground floor apartment in Long Ashton in August 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Long Ashton with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed annually. The lease elapsed on 8 April 2102. Considering the 76 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.