Main reasons to commence your Newbury Park lease extension

Top reasons for lease extension now:

Increase your lease and increase your Newbury Park property value

The market value of a leasehold property in Newbury Park depends on how many years the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed in advance of the 80 year mark. Leasehold Reform legislation enables Newbury Park qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lenders may not loan monies with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically mortgage companies were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

Lease extensions in Newbury Park can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Newbury Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Newbury Park Lease Extension Case Summaries:

Eliot, Newbury Park, Essex

Last October Eliot, came critically close to the eighty-year threshold with the lease on his one bedroom apartment in Newbury Park. Having bought his flat two decades ago, the unexpired term was of little concern. Luckily, he became aware that he needed to take action soon on Extending the lease. Eliot arranged for a lease extension just under the wire last April. Eliot and the landlord who owned the flat above eventually settled on a premium of £5,500 . If the lease had slipped lower than eighty years, the premium would have escalated by a minimum £1,100.

Newbury Park case:

In 2011 we were e-mailed by Dr B Rivera who, having was assigned a lease of a newly refurbished apartment in Newbury Park in September 2005. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative residencies in Newbury Park with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 billed per annum. The lease ran out in 2081. Considering the 55 years remaining we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.