Top reasons for Pershore lease extension

Main reasons to commence your Pershore lease extension today:

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

When it comes to long leasehold property in Pershore, you are in fact renting 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 may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Pershore with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When a lease has less than 80 years remaining, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in Pershore with more than 100 years outstanding on the lease are often regarded as a ‘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 estate charges merit it.

Lending institutions may not finance a property on a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Pershore lease extensions?

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

Pershore Lease Extension Example Cases:

Millie, Pershore, Worcestershire,

Following unsuccessful correspondence with the freeholder of her ground floor flat in Pershore, Millie started the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was finalised in June 2012. The freeholder’s costs were negotiated to below 500 GBP.

Pershore case:

In 2014 we were approached by Dr L White who, having moved into a ground floor flat in Pershore in March 1999. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Pershore with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected monthly. The lease terminated on 26 March 2099. Having 73 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.

Pershore case:

In 2011 we were approached by Mr and Mrs. D Pérez who, having bought a one bedroom apartment in Pershore in September 2004. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar residencies in Pershore with a long lease were in the region of £264,000. The average amount of ground rent was £60 billed per annum. The lease elapsed in 2079. Considering the 53 years remaining we estimated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of professional charges.