Why you should commence your Ombersley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Ombersley property value

The market value of Ombersley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than 80 years

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

Leasehold premises in Ombersley with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lenders will not finance a property with a short lease

The trend since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Ombersley?

Retaining our service will provide you enhanced control over the value of your Ombersley leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Ombersley Lease Extension Example Cases:

Luke, Ombersley, Worcestershire

Half a year ago Luke, started to get close to the eighty-year mark with the lease on his basement flat in Ombersley. In buying his flat two decades ago, the length of the lease was of minimal concern. Fortunately, he recognised he needed to take steps soon on a lease extension. Luke extended the lease just ahead of time last August. Luke and the freeholder via the management company subsequently settled on sum of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £900.

Ombersley case:

Ms Charlotte Turner took over the lease of a one bedroom apartment in Ombersley in September 2006. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative premises in Ombersley with an extended lease were worth £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease ended on 22 November 2099. Having 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.

Ombersley case:

Last Christmas we were e-mailed by Mr G Reed , who completed a basement flat in Ombersley in May 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Ombersley with an extended lease were in the region of £235,600. The mid-range amount of ground rent was £60 collected per annum. The lease finished in 2088. Taking into account 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.