Main reasons to commence your Stone lease extension

Why you should commence your Stone lease extension today:

Increase your lease and increase your Stone property value

Stone leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Stone tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Stone you really ought to see if your lease has between 70 and ninety years left. There are compelling reasons why a Stone leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay

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

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.

Lenders may decide not to issue a mortgage with a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be insufficient for lending purposes.

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

Lease extensions in Stone can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Stone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Stone Lease Extension Example Cases:

Aiden, Stone, Staffordshire,

Aiden owned a 2 bedroom flat in Stone being sold with a lease of a few days over sixty years remaining. Aiden on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Aiden to invoke his statutory right. Aiden procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.

Stone case:

In 2011 we were contacted by Mr and Mrs. D Dupont who, having was assigned a lease of a garden apartment in Stone in July 2012. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical properties in Stone with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2081. Given that there were 55 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.

Stone case:

Last year we were contacted by Mrs Millie Khan , who moved into a one bedroom flat in Stone in February 2008. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable flats in Stone with 100 year plus lease were worth £235,200. The average ground rent payable was £45 billed every twelve months. The lease came to a finish in 2092. Taking into account 66 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.