Why you should start your New Inn lease extension

Why you should commence your New Inn lease extension today:

Increase your lease and increase your New Inn property value

The value of New Inn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than eighty years

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

Leasehold residencies in New Inn with over 100 years left 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not grant a mortgage with a short lease

Most banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should bear in mind that it is probable that someone intending to acquire your property in the future might well do, so if they can't secure a mortgage, then the market price of the property will likely be adversely impacted. Since 2008 most banks and building societies have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in New Inn?

Regardless of whether you are a tenant or a landlord in New Inn,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with New Inn valuers.

New Inn Lease Extension Example Cases:

Elijah, New Inn, Torfaen,

Elijah owned a 2 bedroom apartment in New Inn being sold with a lease of fraction over fifty eight years remaining. Elijah informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

New Inn case:

Dr Leon Sharif took over the lease of a purpose-built flat in New Inn in October 1995. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative premises in New Inn with a long lease were valued around £205,000. The mid-range ground rent payable was £50 collected per annum. The lease end date was on 26 October 2105. Given that there were 79 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.

New Inn case:

In 2012 we were e-mailed by Mrs M Cox who, having took over the lease of a garden flat in New Inn in June 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. Similar flats in New Inn with a long lease were in the region of £275,000. The average amount of ground rent was £65 invoiced annually. The lease concluded on 28 November 2094. Given that there were 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.