Why you should commence your Newbury Park lease extension

Top reasons for lease extension now:

Increase your lease and increase your Newbury Park property value

When it comes to long leasehold premises in Newbury Park, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years left. Leasehold owners in Newbury Park with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once a lease has less than 80 years remaining, under the relevant legislation the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

Newbury Park property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.

Mortgage lenders will not grant a mortgage on a short lease

Banks and Building Societies have set criteria when lending monies secured on leasehold homes. Many will simply not lend at all once the remaining lease term falls below a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining below seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Newbury Park home.

Get in touch with one of our Newbury Park lease extension solicitors or enfranchisement solicitors

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

Newbury Park Lease Extension Case Studies:

Oliver, Newbury Park, Essex,

Oliver owned a 2 bedroom flat in Newbury Park on the market with a lease of fraction over 59 years outstanding. Oliver on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.

Newbury Park case:

Last year we were e-mailed by Mr K Anderson , who bought a garden apartment in Newbury Park in October 2006. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable flats in Newbury Park with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 billed annually. The lease end date was on 24 January 2096. Given that there were 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.