Main reasons to commence your Somerton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Somerton property value

Somerton leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Somerton will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.

Somerton property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lenders may decide not to lend with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Somerton lease extensions?

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

Somerton Lease Extension Example Cases:

Kai, Somerton, Somerset,

Kai owned a 2 bedroom flat in Somerton being marketed with a lease of just over 59 years outstanding. Kai on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and secured satisfactory resolution informally and sell the flat.

Somerton case:

Mrs J Thomas was assigned a lease of a studio flat in Somerton in July 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Somerton with an extended lease were in the region of £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease expired in 2097. Taking into account 71 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.

Somerton case:

Last year we were contacted by Mr and Mrs. W Murphy , who took over the lease of a studio flat in Somerton in March 2011. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Somerton with an extended lease were worth £249,200. The average amount of ground rent was £60 billed every twelve months. The lease terminated on 3 February 2077. Having 51 years unexpired we estimated the compensation to the landlord for the lease extension to be within £42,800 and £49,400 plus professional charges.