Main reasons to start your Old Town lease extension

Why you should commence your Old Town lease extension today:

Increase your lease and increase your Old Town property value

The value of Old Town leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is below than 80 years

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining 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 many years ahead.

Lenders will not issue a mortgage on a short lease

The trend since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Old Town lease extensions?

Irrespective of whether you are a tenant or a freeholder in Old Town,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Old Town valuers.

Old Town Lease Extension Example Cases:

Jonathan, Old Town, Wiltshire

Last Christmas Jonathan, started to get close to the eighty-year threshold with the lease on his studio flat in Old Town. In buying his home two decades ago, the length of the lease was of no interest. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Jonathan was able to extend his lease just in the nick of time in April. Jonathan and the freeholder via the management company in the end agreed on sum of £5,000 . If the lease had dropped below eighty years, the amount would have gone up by a minimum £1,075.

Old Town case:

In 2009 we were phoned by Dr P Girard who, having bought a recently refurbished apartment in Old Town in November 2011. The question was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Old Town with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended on 7 November 2096. Considering the 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.

Old Town case:

Mrs Zoe Vincent acquired a one bedroom apartment in Old Town in July 2005. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical flats in Old Town with an extended lease were valued around £225,800. The average amount of ground rent was £60 billed every twelve months. The lease came to a finish in 2085. Having 60 years remaining we approximated the premium to the freeholder to extend the lease to be between £25,700 and £29,600 plus legals.