Why you should start your Minehead lease extension

Main reasons to start your Minehead lease extension today:

Increase your lease and increase your Minehead property value

As the the remaining lease term of a Minehead domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Minehead will meet the qualifying criteria; that being said a lawyer can confirm 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.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

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

Lenders are really clamping down as regards to homes in Minehead with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus restricting the number of prospective purchasers.

What makes us experts in Minehead lease extensions?

Irrespective of whether you are a tenant or a freeholder in Minehead,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Minehead valuers.

Minehead Lease Extension Example Cases:

Madeleine, Minehead, Somerset,

After unsuccessful correspondence with the landlord of her ground floor flat in Minehead, Madeleine started the lease extension process as the eighty year mark was fast approaching. The transaction was finalised in July 2011. The landlord’s costs were kept to an absolute minimum.

Minehead case:

In 2014 we were called by Mr and Mrs. L Stewart who, having bought a purpose-built flat in Minehead in January 2000. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar homes in Minehead with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 collected monthly. The lease lapsed on 22 February 2096. Taking into account 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.

Minehead case:

Last year we were called by Mr James Rodríguez , who completed a one bedroom flat in Minehead in January 1997. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar flats in Minehead with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 invoiced annually. The lease terminated on 22 November 2076. Considering the 50 years unexpired we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including legals.