Top reasons for South Petherton lease extension

Top reasons for lease extension now:

A South Petherton lease depreciates with the years remaining on the lease.

South Petherton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most South Petherton tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in South Petherton you would be well advised to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies with a short lease

Lending institutions have specific criteria when loaning monies secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term goes lower than a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining below 75 years as adequate security. As well as impacting your ability to sell, it is also relevant if you are wanting to refinance your South Petherton property.

What makes us experts in South Petherton lease extensions?

Regardless of whether you are a tenant or a landlord in South Petherton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South Petherton valuers.

South Petherton Lease Extension Case Studies:

Logan, South Petherton, Somerset

Twenty four months ago Logan, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in South Petherton. Having purchased his flat 18 years ago, the length of the lease was of no concern. Fortunately, he noticed he needed to take action soon on a lease extension. Logan arranged for a lease extension just under the wire in May. Logan and the freeholder eventually agreed on sum of £5,000 . If he not met the deadline, the figure would have become more exhorbitant by a minimum £1,050.

South Petherton case:

Mrs G García moved into a garden flat in South Petherton in February 2007. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparable residencies in South Petherton with an extended lease were in the region of £227,800. The average amount of ground rent was £45 collected per annum. The lease ran out on 25 January 2091. Considering the 65 years unexpired we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.

South Petherton case:

Last year we were phoned by Mrs Chloe André , who was assigned a lease of a recently refurbished apartment in South Petherton in August 2006. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative flats in South Petherton with a long lease were worth £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease terminated on 1 August 2102. Considering the 76 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.