Main reasons to commence your Stonehouse lease extension

Main reasons to commence your Stonehouse lease extension today:

Increase your lease and increase your Stonehouse property value

Stonehouse 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. Legislation has been in place for sometime now allowing qualifying Stonehouse residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Stonehouse you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Stonehouse leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Stonehouse with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not issue a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become nervous at around 75 years. This will be problematic as and when you need to sell or refinance your property as it will be effectively unmortgageable. Even though you might have no immediate plan to sell but when you do your buyer will have to hold off for 2 years before they can initiate the legal procedures for a lease extension.

What makes us experts in Stonehouse lease extensions?

Lease extensions in Stonehouse can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.

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 Stonehouse lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Stonehouse Lease Extension Example Cases:

Edward, Stonehouse, Gloucestershire,

Edward owned a conversion flat in Stonehouse being sold with a lease of a little over fifty eight years remaining. Edward on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Stonehouse case:

Ms V Martinez purchased a ground floor apartment in Stonehouse in July 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Stonehouse with a long lease were worth £245,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease lapsed on 19 June 2094. Considering the 68 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.

Stonehouse case:

Last Autumn we were called by Dr T Watson , who completed a purpose-built flat in Stonehouse in March 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative flats in Stonehouse with a long lease were in the region of £280,000. The average amount of ground rent was £55 billed quarterly. The lease termination date was in 2105. Having 79 years remaining we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.