Why you should commence your Newbury lease extension

Main reasons to start your Newbury lease extension today:

A Newbury lease depreciates with the years remaining on the lease.

Newbury leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Newbury enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Newbury you would be well advised to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Newbury with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions may decide not to issue a mortgage on a short lease

What makes us experts in Newbury lease extensions?

The conveyancing solicitors that we work with undertake Newbury 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 Lease Extension Example Cases:

Teddy, Newbury, Berkshire

Last October Teddy, came precariously close to the 80-year threshold with the lease on his purpose- built flat in Newbury. In buying his flat two decades ago, the lease term was of no significance. by good luck, he became aware that he needed to take action soon on a lease extension. Teddy arranged for a lease extension just under the wire in January. Teddy and the freeholder eventually settled on a premium of £6,000 . If the lease had gone to less than eighty years, the price would have increased by at least £1,000.

Newbury case:

In 2012 we were approached by Mr and Mrs. A Evans who, having owned a studio flat in Newbury in April 2008. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparative properties in Newbury with an extended lease were in the region of £280,000. The average amount of ground rent was £45 invoiced quarterly. The lease concluded on 5 June 2096. Having 70 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.

Newbury case:

In 2011 we were phoned by Mr and Mrs. D Mason who, having purchased a studio flat in Newbury in March 1997. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical premises in Newbury with an extended lease were valued about £223,400. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2085. Given that there were 59 years as a residual term we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 not including fees.