Why you should commence your Montgomery lease extension

Main reasons to commence your Montgomery lease extension today:

Increase your lease and increase your Montgomery property value

Montgomery leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Montgomery residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Montgomery you should check if your lease has between seventy and ninety years left. There are compelling reasons why a Montgomery leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Montgomery with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to lend on a short lease

Many mortgage lenders will be unwilling to grant a mortgage on a lease with under 70 years left to run - although this varies from lender to lender. A purchaser will likely encounter difficulties to obtain a mortgage and this could result in your Montgomery property becoming difficult to dispose of or to obtain finance on.

Why use us for your lease extension in Montgomery?

Engaging our service gives you increased control over the value of your Montgomery leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Montgomery Lease Extension Case Studies:

Samuel, Montgomery, Powys

Last October Samuel, came dangerously close to the eighty-year mark with the lease on his ground floor flat in Montgomery. Having purchased his property two decades ago, the length of the lease was of minimal significance. Luckily, he realised he needed to take action soon on Extending the lease. Samuel was able to extend his lease just in the nick of time in June. Samuel and the landlord eventually settled on an amount of £5,000 . If the lease had slid to less than eighty years, the sum would have increased by a minimum £1,025.

Montgomery case:

In 2013 we were approached by Mr and Mrs. C Bailey who, having moved into a purpose-built apartment in Montgomery in November 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Montgomery with a long lease were worth £193,400. The average ground rent payable was £65 billed yearly. The lease finished on 28 October 2085. Given that there were 59 years as a residual term we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.

Montgomery case:

In 2013 we were contacted by Dr M Roberts who, having took over the lease of a first floor apartment in Montgomery in March 2009. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Similar properties in Montgomery with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed on 11 November 2096. Having 70 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.