Main reasons to commence your Old Stratford lease extension

Top reasons for lease extension now:

A Old Stratford leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Old Stratford. Inevitably, the period of lease left reduces over time. This is often overlooked and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Old Stratford have the right to extend the lease for a further ninety years in accordance with statute. Please give due deliberation before delaying your Old Stratford lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension

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

Leasehold properties in Old Stratford with in excess of 100 years outstanding 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not issue a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved 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 Old Stratford?

The conveyancing solicitors that we work with undertake Old Stratford 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 lawyer we work with provide it.

Old Stratford Lease Extension Example Cases:

Thomas, Old Stratford, Northamptonshire,

Thomas owned a high value flat in Old Stratford being sold with a lease of just over fifty eight years unexpired. Thomas informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.

Old Stratford case:

Last Summer we were contacted by Ms K Watson , who moved into a garden apartment in Old Stratford in February 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical residencies in Old Stratford with 100 year plus lease were valued about £237,600. The mid-range amount of ground rent was £45 collected annually. The lease terminated in 2093. Considering the 67 years left we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.

Old Stratford case:

Last Christmas we were e-mailed by Mr and Mrs. J André , who bought a purpose-built flat in Old Stratford in April 2007. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Old Stratford with 100 year plus lease were worth £280,000. The average ground rent payable was £55 collected monthly. The lease concluded on 9 November 2104. Given that there were 78 years left we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.