Top reasons for Stonehouse lease extension

Main reasons to start 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. Where you are a leasehold owner in Stonehouse you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Stonehouse with in excess of 100 years remaining 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions will not issue a mortgage with a short lease

Banks and building societies do not like short residential leases. You most probably encounter difficulties where you want to sell your flat in Stonehouse if the unexpired term of your lease is less than the criteria set by most lenders. Different lenders have different criteria but on the whole they are looking for a minimum remaining lease term of 65 years.

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

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

Stonehouse Lease Extension Example Cases:

Erin, Stonehouse, Gloucestershire,

Off the back of protracted correspondence with the freeholder of her two bedroom flat in Stonehouse, Erin commenced the lease extension process as the 80 year mark was swiftly advancing. The transaction was concluded in October 2011. The freeholder’s costs were restricted to about 500 pounds.

Stonehouse case:

Last Winter we were phoned by Mr Luke Bernard , who acquired a first floor flat in Stonehouse in November 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Stonehouse with an extended lease were worth £176,200. The mid-range ground rent payable was £65 billed yearly. The lease concluded on 12 October 2082. Taking into account 56 years outstanding we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of expenses.

Stonehouse case:

In 2011 we were e-mailed by Mrs P Morel who, having completed a garden apartment in Stonehouse in January 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Stonehouse with a long lease were worth £235,200. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 18 September 2092. Having 66 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.