Top reasons for Stratford Upon Avon lease extension

Main reasons to commence your Stratford Upon Avon lease extension today:

A Stratford Upon Avon lease depreciates with the years remaining on the lease.

Stratford Upon Avon residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.

Stratford Upon Avon property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions will not lend on a short lease

Many banks and building societies require a lengthy amount of time remaining on a leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is likely that someone wanting to buy your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of the property will likely be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to lend on

Get in touch with one of our Stratford Upon Avon lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Stratford Upon Avon,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stratford Upon Avon valuers.

Stratford Upon Avon Lease Extension Case Studies:

Harry, Stratford Upon Avon, Warwickshire

Last year Harry, started to get near to the eighty-year threshold with the lease on his basement apartment in Stratford Upon Avon. In buying his home twenty years ago, the length of the lease was of minimal concern. Luckily, he recognised he needed to take steps soon on Extending the lease. Harry was able to extend his lease just under the wire last September. Harry and the landlord in the end agreed on a premium of £5,500 . If the lease had dropped to less than eighty years, the premium would have escalated by a minimum £1,100.

Stratford Upon Avon case:

In 2011 we were e-mailed by Mr Ibrahim Brooks who, having moved into a newly refurbished apartment in Stratford Upon Avon in September 2000. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Stratford Upon Avon with an extended lease were in the region of £216,000. The average ground rent payable was £60 invoiced annually. The lease expiry date was on 20 May 2084. Considering the 58 years left we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.

Stratford Upon Avon case:

In 2012 we were contacted by Mrs S Hill who, having acquired a ground floor apartment in Stratford Upon Avon in July 2001. The question was if we could estimate the price could be for a 90 year lease extension. Comparable homes in Stratford Upon Avon with a long lease were in the region of £200,000. The average ground rent payable was £50 collected annually. The lease ended on 15 August 2104. Considering the 78 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.