Why you should start your Melksham lease extension

Top reasons for lease extension now:

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

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Melksham can extend the lease for an additional ninety years under legislation. Please give careful consideration before delaying your Melksham lease extension. Putting off the costs now simply escalates the premium you will eventually have to pay to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Melksham with more than 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to finance a property on a short lease

The propensity since the credit crunch 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 resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would lend on a lease with 25 years plus the term of the loan - routinely 50 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.

Why use us for your lease extension in Melksham?

Using our service will provide you better control over the value of your Melksham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Melksham Lease Extension Case Studies:

Jamie, Melksham, Wiltshire

Last Autumn Jamie, came precariously near to the eighty-year threshold with the lease on his two bedroom flat in Melksham. In buying his home 18 years ago, the unexpired term was of no bearing. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Jamie was able to extend his lease just under the wire last May. Jamie and the freeholder via the management company eventually settled on an amount of £5,500 . If the lease had dropped lower than eighty years, the price would have escalated by a minimum £950.

Melksham case:

In 2011 we were contacted by Mrs Nicole Taylor who, having bought a one bedroom flat in Melksham in August 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Melksham with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed per annum. The lease termination date was in 2101. Taking into account 75 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.

Melksham case:

Last Winter we were phoned by Mr and Mrs. P Adams , who bought a studio flat in Melksham in April 1997. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Melksham with a long lease were valued around £250,400. The average amount of ground rent was £65 billed annually. The lease came to a finish on 12 August 2090. Having 64 years remaining we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus expenses.