Top reasons for New Milton lease extension

Top reasons for lease extension now:

A New Milton lease depreciates with the years remaining on the lease.

The only way is down when it comes to New Milton lease terms. New Milton properties that have a lease term lower than 80 years will drop in market price even faster, and the cost to extend your lease will increase.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lending institutions may not grant a mortgage with a short lease

Banks and building societies are really clamping down as regards to homes in New Milton with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus limiting your market.

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

Irrespective of whether you are a tenant or a freeholder in New Milton,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 experience and the close ties they enjoy with New Milton valuers.

New Milton Lease Extension Example Cases:

Jordan, New Milton, Hampshire,

After unsuccessful correspondence with the freeholder of her one bedroom flat in New Milton, Jordan commenced the lease extension process just as her lease was nearing the critical eighty-year deadline. The transaction was finalised in January 2008. The landlord’s fees were kept to an absolute minimum.

New Milton case:

In 2013 we were called by Mr Andrew Hall who, having completed a recently refurbished flat in New Milton in October 2010. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Similar properties in New Milton with a long lease were in the region of £250,000. The average ground rent payable was £50 collected monthly. The lease finished in 2094. Given that there were 68 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.

New Milton case:

In 2009 we were phoned by Mr and Mrs. Y Rivera who, having took over the lease of a first floor apartment in New Milton in August 2002. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative premises in New Milton with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease terminated on 12 January 2105. Taking into account 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.