Main reasons to commence your Stone Cross lease extension

Main reasons to commence your Stone Cross lease extension today:

A Stone Cross leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Stone Cross is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Stone Cross will qualify for this right; that being said a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

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

Leasehold premises in Stone Cross with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may not loan monies on a short lease

Nearly all mortgage companies will be unwilling to grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will likely find it difficult to obtain a mortgage and this will result in your Stone Cross property being difficult to dispose of or to obtain finance on.

Get in touch with one of our Stone Cross lease extension solicitors or enfranchisement solicitors

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

Stone Cross Lease Extension Case Summaries:

Jennifer, Stone Cross, East Sussex,

Trailing lengthy discussions with the freeholder of her purpose-built apartment in Stone Cross, Jennifer initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The legal work was finalised in November 2009. The landlord’s fees were restricted to slightly above 450 pounds.

Stone Cross case:

Dr Seth Morgan was assigned a lease of a garden flat in Stone Cross in March 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Stone Cross with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease end date was in 2104. Given that there were 78 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.

Stone Cross case:

Mr and Mrs. C Johnson bought a garden apartment in Stone Cross in June 1997. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative flats in Stone Cross with a long lease were in the region of £267,600. The average amount of ground rent was £65 invoiced annually. The lease elapsed on 1 April 2093. Having 67 years remaining we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus legals.