Top reasons for Minehead lease extension

Top reasons for lease extension now:

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

Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Minehead. Inevitably, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Minehead have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful deliberation before putting off your Minehead lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease

Minehead property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders may decide not to lend with a short lease

Most banks and building societies will be unwilling to lend on a lease with under 70 years left to run - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Minehead property becoming difficult to sell or refinance.

Get in touch with one of our Minehead lease extension solicitors or enfranchisement solicitors

Lease extensions in Minehead can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Minehead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Minehead Lease Extension Case Studies:

Oscar, Minehead, Somerset,

Oscar was the the leasehold owner of a conversion flat in Minehead on the market with a lease of fraction over 59 years outstanding. Oscar informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert legal guidance and secured satisfactory deal informally and sell the property.

Minehead case:

Mr and Mrs. O Miller purchased a one bedroom flat in Minehead in May 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable homes in Minehead with an extended lease were valued around £254,200. The average ground rent payable was £60 billed per annum. The lease lapsed in 2077. Having 51 years left we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus costs.

Minehead case:

Dr A Anderson purchased a garden flat in Minehead in May 1995. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Minehead with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2088. Taking into account 62 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.