Why you should start your Midhurst lease extension

Main reasons to start your Midhurst lease extension today:

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

With a domestic leasehold property in Midhurst, you effectively rent it for a certain amount 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 a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years left. Anyone in Midhurst with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has fewer than eighty years remaining, under the current Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold properties in Midhurst with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies will not issue a mortgage on a short lease

Banks and building societies are really restricting their approach as regards to properties in Midhurst with short leases. For example you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus narrowing the number of potential buyers.

What makes us experts in Midhurst lease extensions?

The lawyers that we work with undertake Midhurst lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Midhurst Lease Extension Case Studies:

Isabel, Midhurst, West Sussex,

After unsuccessful negotiations with the landlord of her ground floor apartment in Midhurst, Isabel commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction completed in June 2010. The freeholder’s charges were kept to an absolute minimum.

Midhurst case:

Mr M Morel bought a first floor flat in Midhurst in July 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Midhurst with a long lease were worth £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ended in 2097. Considering the 71 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.

Midhurst case:

Mr U Ali completed a basement apartment in Midhurst in November 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar homes in Midhurst with an extended lease were valued around £230,800. The average ground rent payable was £60 billed every twelve months. The lease concluded on 10 June 2086. Considering the 60 years unexpired we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.