Main reasons to commence your Montacute lease extension

Top reasons for lease extension now:

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

The closer a domestic lease in Montacute nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Montacute will meet the qualifying criteria; however a conveyancer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

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

Leasehold properties in Montacute with more than one hundred years left 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to lend on a short lease

Mortgage companies are making their criteria more stringent and a meaningful number now want flats to have at least sixty if not seventy years left once the mortgage has expired. Given that a number of flats in Montacute were built in the fifties, sixties and seventies this means many now need to be extended if they wish to obtain a mortgage.

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

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

Montacute Lease Extension Example Cases:

Abbie, Montacute, Somerset,

Subsequent to protracted discussions with the freeholder of her garden apartment in Montacute, Abbie commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The lease extension was concluded in February 2007. The freeholder’s costs were negotiated to a tad over 600 GBP.

Montacute case:

Mr and Mrs. J González owned a one bedroom flat in Montacute in May 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative flats in Montacute with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 collected annually. The lease termination date was on 26 March 2084. Considering the 58 years left we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.

Montacute case:

Last month we were phoned by Dr Maisie Lewis , who owned a purpose-built apartment in Montacute in February 1996. The dilemma was if we could approximate the price could be for a 90 year lease extension. Identical premises in Montacute with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished in 2104. Having 78 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.