Main reasons to start your New Inn lease extension

Why you should start your New Inn lease extension today:

Increase your lease and increase your New Inn property value

The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in New Inn can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your New Inn lease extension. Postponing that expense now simply increases the price you will ultimately have to pay to extend the lease.

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

Leasehold residencies in New Inn with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

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

Banks and Building Societies have specific criteria when loaning monies charged on leasehold homes. Many will simply refrain from lending at all once the residual lease term slips below a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years as adequate security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your New Inn property.

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

The lawyers that we work with undertake New Inn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

New Inn Lease Extension Case Studies:

Hugo, New Inn, Torfaen,

Hugo was the the leasehold owner of a high value flat in New Inn being marketed with a lease of a few days over 59 years outstanding. Hugo informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Hugo to invoke his statutory right. Hugo procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.

New Inn case:

In 2010 we were phoned by Ms D Patel who, having acquired a first floor apartment in New Inn in July 2011. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative homes in New Inn with a long lease were in the region of £225,800. The average ground rent payable was £60 billed yearly. The lease finished in 2086. Considering the 60 years remaining we approximated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including professional charges.

New Inn case:

Last Winter we were contacted by Mr and Mrs. B Lefèvre , who moved into a one bedroom flat in New Inn in June 2011. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in New Inn with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 billed per annum. The lease elapsed on 28 October 2106. Having 80 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.