Main reasons to commence your Ollerton lease extension

Top reasons for lease extension now:

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

Ollerton residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.

An extended lease has roughly the same value as a freehold

Leasehold properties in Ollerton with more than 100 years left on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to finance a property with a short lease

Banks and Building Societies have specific criteria when loaning funds secured on leasehold homes. Many will simply refuse lend at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired below seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are intending to refinance your Ollerton property.

What makes us experts in Ollerton lease extensions?

Using our service gives you increased control over the value of your Ollerton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Ollerton Lease Extension Example Cases:

Daniel, Ollerton, Nottinghamshire

During the course of the last few months Daniel, came dangerously near to the eighty-year threshold with the lease on his ground floor apartment in Ollerton. Having bought his home 19 years ago, the lease term was of no interest. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Daniel extended the lease at the eleventh hour in March. Daniel and the landlord who owned the flat above eventually agreed on sum of £5,000 . If the lease had slid lower than eighty years, the premium would have escalated by at least £1,100.

Ollerton case:

Last Spring we were called by Dr E Wright , who moved into a ground floor flat in Ollerton in January 2004. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative premises in Ollerton with a long lease were valued around £257,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease ran out in 2091. Having 65 years unexpired we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus professional charges.

Ollerton case:

Mr and Mrs. A Ramírez acquired a studio flat in Ollerton in July 2005. The question was if we could approximate the price could be to extend the lease by ninety years. Comparable residencies in Ollerton with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2080. Having 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of legals.