Why you should commence your Raglan lease extension

Main reasons to start your Raglan lease extension today:

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

Raglan leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Raglan tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Raglan you must check if your lease has between 70 and 90 years left. 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 pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.

Lenders may decide not to finance a property on a short lease

Mortgage companies do not like short residential leases. You are likely to experience problems if you want to sell your flat in Raglan if the unexpired term of your lease is less than the criteria set by the majority of mortgage companies. Different lenders have different criteria but in the main they are looking for an unexpired term of at least 65 years.

What makes us experts in Raglan lease extensions?

The conveyancing solicitors that we work with handle Raglan 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.

Raglan Lease Extension Case Studies:

Mollie, Raglan, Monmouthshire,

Following unsuccessful correspondence with the freeholder of her leasehold flat in Raglan, Mollie commenced the lease extension process just as the lease was coming close to the critical eighty-year mark. The lease extension was concluded in February 2013. The landlord’s costs were restricted to a tad over 450 pounds.

Raglan case:

Last Winter we were phoned by Dr Stanley Lambert , who purchased a basement apartment in Raglan in September 2010. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Raglan with an extended lease were worth £168,800. The average ground rent payable was £60 invoiced per annum. The lease lapsed in 2081. Having 55 years remaining we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.

Raglan case:

Last year we were called by Dr Natasha Nelson , who moved into a recently refurbished flat in Raglan in July 1996. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative residencies in Raglan with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 collected yearly. The lease ended in 2092. Given that there were 66 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.