Main reasons to commence your Newbury Park lease extension

Main reasons to start your Newbury Park lease extension today:

Increase your lease and increase your Newbury Park property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Newbury Park. Inevitably, the term of lease left shortens over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Newbury Park have the right to extend the lease for an additional 90 years under legislation. You should give careful attention before delaying your Newbury Park lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease

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

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become nervous at around 75 years. This will cause difficulties when you come to sell or refinance your flat as it will be effectively unmortgageable. Even though you may have no immediate desire to sell but when you do your purchaser will have to wait 2 years before being able to exercise the right to a an extension to the lease.

What makes us experts in Newbury Park lease extensions?

The conveyancing solicitors that we work with handle Newbury Park 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.

Newbury Park Lease Extension Case Summaries:

Hunter, Newbury Park, Essex,

Hunter owned a studio flat in Newbury Park being marketed with a lease of fraction over fifty eight years remaining. Hunter informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.

Newbury Park case:

Mr and Mrs. S Lambert took over the lease of a studio flat in Newbury Park in May 2009. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable homes in Newbury Park with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 billed per annum. The lease expired in 2100. Given that there were 75 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.