Top reasons for Montgomery lease extension

Main reasons to start 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 accordingly 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 must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Montgomery property with a lease extension is almost the same value as a freehold

Leasehold residencies in Montgomery with over 100 years remaining 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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may decide not to lend on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are regarded as insufficient security.

What makes us experts in Montgomery lease extensions?

Irrespective of whether you are a tenant or a landlord in Montgomery,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Montgomery valuers.

Montgomery Lease Extension Example Cases:

Milo, Montgomery, Powys,

Milo was the the leasehold proprietor of a 2 bedroom apartment in Montgomery being sold with a lease of fraction over 72 years unexpired. Milo informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.

Montgomery case:

Last Spring we were contacted by Dr W Lambert , who owned a ground floor flat in Montgomery in May 2000. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative flats in Montgomery with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 5 March 2097. Having 71 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.

Montgomery case:

Mrs V King owned a one bedroom flat in Montgomery in March 2006. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative flats in Montgomery with a long lease were in the region of £254,200. The average ground rent payable was £60 billed every twelve months. The lease lapsed on 25 June 2077. Taking into account 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of expenses.