Why you should commence your Redland lease extension

Main reasons to commence your Redland lease extension today:

Increase your lease and increase your Redland property value

The market value of Redland leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is below than 80 years

Redland property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions will not finance a property on a short lease

The trend since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 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 Redland?

Regardless of whether you are a tenant or a freeholder in Redland,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Redland valuers.

Redland Lease Extension Example Cases:

Rory, Redland, Bristol,

Rory owned a high value flat in Redland being sold with a lease of a little over 59 years outstanding. Rory informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Rory to invoke his statutory right. Rory obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.

Redland case:

Dr Alexandra Wood moved into a garden apartment in Redland in March 1997. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable properties in Redland with an extended lease were worth £220,400. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated in 2090. Taking into account 64 years unexpired we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of fees.

Redland case:

Last Spring we were approach by Mr and Mrs. V Cox , who acquired a newly refurbished apartment in Redland in September 2006. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative residencies in Redland with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed annually. The lease end date was on 25 September 2101. Given that there were 75 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.