Main reasons to commence your Newent lease extension

Why you should start your Newent lease extension today:

A Newent leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Newent residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Newent property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Newent will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.

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

Leasehold residencies in Newent with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not finance a property with a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Newent?

Retaining our service will provide you enhanced control over the value of your Newent leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Newent Lease Extension Example Cases:

Maisie, Newent, Gloucestershire,

In the wake of eight months of unsuccessful negotiations with the freeholder of her leasehold flat in Newent, Maisie initiated the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction was concluded in February 2015. The freeholder’s costs were negotiated to below five hundred GBP.

Newent case:

Last Winter we were approach by Mr and Mrs. N Rivera , who owned a ground floor flat in Newent in August 2000. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Newent with an extended lease were valued around £285,000. The average amount of ground rent was £45 invoiced yearly. The lease lapsed in 2098. Given that there were 72 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.

Newent case:

In 2009 we were phoned by Mr and Mrs. G Alexander who, having took over the lease of a purpose-built flat in Newent in March 2001. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative properties in Newent with an extended lease were in the region of £233,200. The average amount of ground rent was £60 billed quarterly. The lease end date was on 9 July 2087. Taking into account 61 years unexpired we calculated the premium to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of professional charges.