Why you should commence your Stevenage lease extension

Top reasons for lease extension now:

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

Stevenage leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Stevenage tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Stevenage you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Stevenage flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold residencies in Stevenage with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to lend with a short lease

Lending institutions have set criteria when loaning monies secured on leasehold property. Some will simply refrain from lending at all once the residual lease term drops lower than a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to refinance your Stevenage home.

Why use us for your lease extension in Stevenage?

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

Stevenage Lease Extension Case Summaries:

Muhammad, Stevenage, Hertfordshire,

Muhammad owned a studio flat in Stevenage on the market with a lease of a little over sixty years left. Muhammad on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.

Stevenage case:

In 2010 we were e-mailed by Dr R Clark who, having moved into a first floor apartment in Stevenage in April 2007. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Stevenage with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced yearly. The lease elapsed in 2100. Taking into account 74 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.

Stevenage case:

Last year we were e-mailed by Mrs Paige Peterson , who bought a garden apartment in Stevenage in February 1998. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Stevenage with a long lease were valued around £243,000. The average ground rent payable was £65 collected monthly. The lease expired on 9 November 2089. Having 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.