Why you should commence your Pewsey lease extension

Why you should commence your Pewsey lease extension today:

A Pewsey lease depreciates with the years remaining on the lease.

Pewsey 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. It is the case that most Pewsey tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Pewsey you must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur 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 residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not issue a mortgage on a short lease

Most high street banks are tightening their criteria and many now expect flats to have at least 60 if not 70 years left at the end of the mortgage. As plenty of flats in Pewsey were created in the fifties, sixties and seventies as a result many now require lease extensions if they wish to obtain a mortgage.

Why use us for your lease extension in Pewsey?

The conveyancers that we work with handle Pewsey 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 conveyancer we work with provide it.

Pewsey Lease Extension Example Cases:

Aiden, Pewsey, Wiltshire,

Aiden owned a 2 bedroom flat in Pewsey being marketed with a lease of fraction over fifty eight years unexpired. Aiden informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Pewsey case:

Last month we were contacted by Mrs D Clarke , who purchased a studio apartment in Pewsey in July 2012. The question was if we could estimate the price could be for a ninety year lease extension. Comparative properties in Pewsey with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease finished on 9 September 2095. Considering the 69 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.

Pewsey case:

Last Summer we were called by Mr and Mrs. E Carter , who acquired a purpose-built apartment in Pewsey in August 1996. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Pewsey with a long lease were in the region of £290,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease elapsed on 25 November 2106. Having 80 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.