Why you should commence your New Milton lease extension

Top reasons for lease extension now:

Increase your lease and increase your New Milton property value

The re-sale value of a leasehold property in New Milton is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed well before the eighty year mark. Current legislation enables New Milton qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

New Milton property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This may cause difficulties once you wish to market or remortgage your property as it will be effectively unmortgageable. You may not have an immediate intention to sell but when you do your purchaser will have to hold off for two years before being able to exercise the right to a an extension to the lease.

What makes us experts in New Milton lease extensions?

The conveyancers that we work with procure New Milton 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 lawyer we work with provide it.

New Milton Lease Extension Case Studies:

Sian, New Milton, Hampshire,

Subsequent to unsuccessful negotiations with the freeholder of her leasehold apartment in New Milton, Sian started the lease extension process as the 80 year threshold was fast nearing. The lease extension was concluded in April 2015. The freeholder’s charges were negotiated to about 550 GBP.

New Milton case:

In 2014 we were e-mailed by Mr Jamie Patel who, having acquired a studio flat in New Milton in March 1996. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparable premises in New Milton with a long lease were worth £200,800. The average ground rent payable was £65 billed yearly. The lease ran out in 2086. Taking into account 60 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including expenses.

New Milton case:

In 2009 we were e-mailed by Mrs C Carter who, having was assigned a lease of a purpose-built flat in New Milton in November 2009. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar properties in New Milton with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ended on 19 May 2097. Given that there were 71 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.