Main reasons to start your Presteigne lease extension

Main reasons to commence your Presteigne lease extension today:

Increase your lease and increase your Presteigne property value

When it comes to domestic leasehold premises in Presteigne, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear 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 gets disproportionately more expensive particularly when there are less than 80 years remaining. Anyone in Presteigne with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years outstanding, under the current Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in Presteigne with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may not lend on a short lease

Banks and Building Societies have specific criteria when lending monies secured on leasehold homes. Some will simply refrain from lending at all once the remaining lease term slips beneath a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are wanting to refinance your Presteigne property.

What makes us experts in Presteigne lease extensions?

Using our service will provide you better control over the value of your Presteigne leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Presteigne Lease Extension Example Cases:

Chloe, Presteigne, Powys,

Trailing protracted correspondence with the freeholder of her basement flat in Presteigne, Chloe started the lease extension process just as the lease was approaching the crucial 80-year threshold. The legal work was finalised in February 2007. The landlord’s charges were kept to an absolute minimum.

Presteigne case:

In 2011 we were phoned by Mr Jacob Lambert who, having acquired a studio apartment in Presteigne in June 2008. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable homes in Presteigne with a long lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2104. Considering the 78 years left we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.

Presteigne case:

Mr and Mrs. C Bell bought a first floor flat in Presteigne in August 2007. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar flats in Presteigne with an extended lease were worth £186,000. The mid-range amount of ground rent was £65 billed quarterly. The lease finished in 2084. Given that there were 58 years unexpired we calculated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of fees.