Why you should commence your Pershore lease extension

Why you should commence your Pershore lease extension today:

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

Pershore leases on residential properties are gradually decreasing in 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 allowing qualifying Pershore residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Pershore you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

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

Leasehold properties in Pershore with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to grant a mortgage on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Pershore?

Lease extensions in Pershore can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Pershore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Pershore Lease Extension Example Cases:

Aarav, Pershore, Worcestershire

Two years ago Aarav, started to get close to the 80-year threshold with the lease on his first floor flat in Pershore. Having bought his home two decades ago, the unexpired term was of little significance. Fortunately, he recognised he needed to take action soon on Extending the lease. Aarav was able to extend his lease just under the wire in May. Aarav and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had dropped to less than 80 years, the sum would have escalated by at least £900.

Pershore case:

In 2013 we were approached by Mr and Mrs. T Martínez who, having owned a first floor flat in Pershore in November 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Pershore with a long lease were valued about £168,800. The average ground rent payable was £60 invoiced yearly. The lease ran out on 17 January 2081. Considering the 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.

Pershore case:

Last Spring we were approach by Mr and Mrs. N Ramírez , who bought a ground floor flat in Pershore in July 2002. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar premises in Pershore with a long lease were valued around £232,800. The mid-range amount of ground rent was £45 collected annually. The lease expired on 27 August 2091. Given that there were 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.