Why you should start your Stevenage lease extension

Why you should start your Stevenage lease extension today:

Increase your lease and increase your Stevenage property value

When it comes to residential leasehold premises in Stevenage, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Stevenage with a lease nearing 81 years unexpired should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the current legislation the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.

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

It is generally considered that a property with over 100 years remaining 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 many years in the future.

Banks and Building Societies will not grant a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders were content with 25 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 standard.

What makes us experts in Stevenage lease extensions?

The conveyancing solicitors that we work with procure Stevenage lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Stevenage Lease Extension Example Cases:

Amber, Stevenage, Hertfordshire,

After lengthy correspondence with the landlord of her leasehold apartment in Stevenage, Amber commenced the lease extension process as the 80 year deadline was swiftly nearing. The transaction was concluded in October 2015. The freeholder’s fees were restricted to a tad over 500 GBP.

Stevenage case:

In 2010 we were contacted by Dr W Vincent who, having completed a garden flat in Stevenage in January 2000. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar flats in Stevenage with an extended lease were worth £198,800. The average amount of ground rent was £55 collected yearly. The lease concluded in 2081. Taking into account 55 years left we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including professional charges.

Stevenage case:

Dr H Hernández completed a purpose-built apartment in Stevenage in August 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical premises in Stevenage with a long lease were valued around £295,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish on 27 August 2101. Taking into account 75 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.