Why you should start your Olney lease extension

Why you should start your Olney lease extension today:

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

Olney leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Olney residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Olney you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

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

Leasehold properties in Olney with more than 100 years unexpired 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may decide not to finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become concerned at around 75 years. This may cause difficulties as and when you wish to market or refinance your property as it will be practically unmortgageable. Even though you may not have an immediate plan to sell but when you do your buyer will need to wait two years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Olney?

Engaging our service gives you enhanced control over the value of your Olney leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Olney Lease Extension Case Summaries:

Ellen, Olney, Buckinghamshire,

In the wake of 9 months of lengthy negotiations with the freeholder of her first floor flat in Olney, Ellen initiated the lease extension process as the 80 year mark was swiftly nearing. The legal work was concluded in February 2011. The landlord’s charges were kept to an absolute minimum.

Olney case:

Ms B Thomas completed a first floor flat in Olney in April 2005. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Olney with a long lease were in the region of £208,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out in 2087. Considering the 61 years remaining we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of costs.

Olney case:

Last Spring we were called by Dr Alfie Taylor , who moved into a first floor apartment in Olney in January 2010. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparative residencies in Olney with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish on 19 January 2098. Given that there were 72 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.