Main reasons to start your Moreton In Marsh lease extension

Why you should commence your Moreton In Marsh lease extension today:

A Moreton In Marsh lease depreciates with the years remaining on the lease.

Moreton In Marsh leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Moreton In Marsh residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Moreton In Marsh you should check if your lease has between seventy and ninety years left. There are good reasons why a Moreton In Marsh flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Moreton In Marsh with over 100 years unexpired on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

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

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Moreton In Marsh lease extensions?

Engaging our service gives you enhanced control over the value of your Moreton In Marsh leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Moreton In Marsh Lease Extension Example Cases:

Kian, Moreton In Marsh, Gloucestershire

Two years ago Kian, started to get close to the 80-year threshold with the lease on his studio apartment in Moreton In Marsh. Having bought his property twenty years previously, the lease term was of minimal relevance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Kian arranged for a lease extension just ahead of time last January. Kian and the landlord eventually settled on an amount of £5,500 . If the lease had fallen lower than 80 years, the price would have escalated by at least £1,025.

Moreton In Marsh case:

In 2012 we were called by Dr G Mitchell who, having moved into a basement flat in Moreton In Marsh in February 1995. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative residencies in Moreton In Marsh with an extended lease were valued around £260,000. The average ground rent payable was £50 billed quarterly. The lease expired on 28 January 2097. Having 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.

Moreton In Marsh case:

In 2013 we were e-mailed by Dr B Rose who, having purchased a garden flat in Moreton In Marsh in January 2000. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative premises in Moreton In Marsh with a long lease were valued around £254,200. The average ground rent payable was £60 invoiced monthly. The lease lapsed on 27 July 2077. Considering the 51 years unexpired we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of expenses.