Why you should commence 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

For those whose Old Town property is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.

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

It is conventional wisdom that a property with in excess of one hundred 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 equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to finance a property with a short lease

Banks and Building Societies have specific criteria when lending funds secured on leasehold homes. Many will simply not lend at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant where you are intending to refinance your Old Town home.

Get in touch with one of our Old Town lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you increased control over the value of your Old Town leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish 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.

Old Town Lease Extension Case Studies:

Nicole, Old Town, Wiltshire,

After lengthy discussions with the landlord of her basement apartment in Old Town, Nicole commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension was finalised in August 2009. The freeholder’s fees were negotiated to slightly above 500 pounds.

Old Town case:

Ms G Watson completed a garden apartment in Old Town in January 2006. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative residencies in Old Town with 100 year plus lease were worth £166,800. The mid-range ground rent payable was £50 collected monthly. The lease expired in 2076. Given that there were 50 years remaining we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus legals.

Old Town case:

Last Spring we were called by Ms Emma Moore , who was assigned a lease of a ground floor flat in Old Town in July 2011. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar homes in Old Town with an extended lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ended on 26 July 2096. Given that there were 70 years unexpired we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.