Top reasons for Oswestry lease extension

Top reasons for lease extension now:

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

Oswestry leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Oswestry residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Oswestry you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease 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 approximately the equivalent as a freehold. Where an additional 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 issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to get jittery at around 75 years. This may cause difficulties once you come to sell or remortgage your property as it will be effectively unmortgageable. Even though you might have no imminent desire to sell but when you do your buyer will have to wait a couple of years before being able to initiate the legal procedures for an extension to the lease.

What makes us experts in Oswestry lease extensions?

The conveyancers that we work with handle Oswestry lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Oswestry Lease Extension Case Summaries:

Oliver, Oswestry, Shropshire

Two years ago Oliver, started to get near to the 80-year threshold with the lease on his ground floor apartment in Oswestry. In buying his home two decades ago, the lease term was of no importance. Luckily, he recognised he needed to take steps soon on a lease extension. Oliver was able to extend his lease at the eleventh hour last March. Oliver and the freeholder ultimately agreed on an amount of £5,000 . If he not met the deadline, the price would have increased by a minimum £1,100.

Oswestry case:

Last month we were phoned by Mr Theo François , who was assigned a lease of a garden apartment in Oswestry in March 2000. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Oswestry with an extended lease were valued about £176,200. The average ground rent payable was £65 invoiced monthly. The lease lapsed on 21 September 2082. Having 56 years unexpired we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus professional charges.

Oswestry case:

In 2010 we were contacted by Mr and Mrs. M Rivera who, having completed a purpose-built flat in Oswestry in September 2008. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative flats in Oswestry with 100 year plus lease were valued around £237,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded in 2093. Having 67 years remaining we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.