Top reasons for Rocester lease extension

Top reasons for lease extension now:

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

Rocester leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Rocester tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Rocester you would be well advised to investigate 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 increases dramatically as an element of the premium you will incur is what is known as a marriage value

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

Leasehold premises in Rocester with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

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

Mortgage companies are making their criteria more stringent and a meaningful number now expect flats to have at least 60 if not 70 years left at the end of the mortgage. Considering many flats in Rocester were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Rocester lease extensions?

Engaging our service will provide you increased control over the value of your Rocester leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Rocester Lease Extension Case Studies:

Jackson, Rocester, Staffordshire

Two years ago Jackson, came seriously near to the 80-year threshold with the lease on his one bedroom apartment in Rocester. In buying his property two decades ago, the lease term was of minimal relevance. Fortunately, he noticed he needed to take action soon on Extending the lease. Jackson extended the lease just in the nick of time in August. Jackson and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £875.

Rocester case:

Last May we were contacted by Dr Toby Wilson , who moved into a garden apartment in Rocester in July 1997. The question was if we could estimate the price could be to extend the lease by ninety years. Identical premises in Rocester with a long lease were valued about £270,000. The mid-range ground rent payable was £55 invoiced per annum. The lease finished in 2101. Having 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.

Rocester case:

Dr L Davies bought a one bedroom flat in Rocester in June 2010. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical residencies in Rocester with a long lease were valued around £168,800. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish on 6 May 2081. Taking into account 55 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.