Why you should commence your Newbury lease extension

Why you should start your Newbury lease extension today:

Increase your lease and increase your Newbury property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Newbury. Inevitably, the length of lease left shortens over time. This is often ignored and only becomes a problem when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Newbury have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give careful attention before delaying your Newbury lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension

Newbury property with a lease extension is almost the same value as a freehold

Leasehold premises in Newbury with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lending institutions may not grant a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become jittery at around 75 years. This will be problematic when you come to sell or remortgage your flat as it will be practically unmortgageable. Even though you might not have an immediate intention to sell but when you do your purchaser will need to hold off for two years before they can initiate the legal procedures for an extension to the lease.

What makes us experts in Newbury lease extensions?

Engaging our service will provide you better control over the value of your Newbury leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Newbury Lease Extension Case Summaries:

Amelia, Newbury, Berkshire,

In the wake of 9 months of unsuccessful negotiations with the freeholder of her basement flat in Newbury, Amelia initiated the lease extension process as the eighty year threshold was swiftly advancing. The legal work was finalised in March 2009. The landlord’s charges were kept to an absolute minimum.

Newbury case:

Mr P Bennett moved into a basement apartment in Newbury in November 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Newbury with 100 year plus lease were valued about £265,200. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2092. Considering the 66 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including professional charges.

Newbury case:

Mr and Mrs. M Cooper purchased a studio apartment in Newbury in January 2010. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Newbury with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out on 10 February 2081. Considering the 55 years outstanding we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus costs.