Main reasons to commence your Oldland lease extension

Main reasons to start your Oldland lease extension today:

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

When it comes to domestic leasehold premises in Oldland, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years left. Anyone in Oldland with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years remaining, under the current statute the landlord can calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.

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

Leasehold residencies in Oldland with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not issue a mortgage with a short lease

The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically mortgage companies 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 standard.

What makes us experts in Oldland lease extensions?

Regardless of whether you are a tenant or a landlord in Oldland,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 Oldland valuers.

Oldland Lease Extension Case Studies:

Andrew, Oldland, Gloucestershire

Last year Andrew, came critically close to the eighty-year mark with the lease on his one bedroom flat in Oldland. Having purchased his home 18 years previously, the length of the lease was of no bearing. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Andrew was able to extend his lease just under the wire last January. Andrew and the freeholder subsequently settled on an amount of £6,000 . If the lease had gone to less than eighty years, the amount would have increased by a minimum £1,000.

Oldland case:

In 2010 we were e-mailed by Mr Alexander Jones who, having took over the lease of a studio flat in Oldland in November 2008. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical properties in Oldland with 100 year plus lease were worth £240,600. The average ground rent payable was £60 collected monthly. The lease end date was on 18 March 2088. Given that there were 62 years left we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.

Oldland case:

In 2010 we were contacted by Mr Dylan Gray who, having owned a basement apartment in Oldland in April 2012. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparable residencies in Oldland with an extended lease were worth £174,200. The average amount of ground rent was £55 invoiced annually. The lease ended in 2077. Taking into account 51 years unexpired we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.