Why you should start your Street lease extension

Why you should commence your Street lease extension today:

Increase your lease and increase your Street property value

Street residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Street with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 freehold unless savings on ground rent and estate charges justify it.

Lenders may decide not to finance a property with a short lease

Mortgage companies are really restricting their approach as regards to properties in Street with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus restricting your market.

What makes us experts in Street lease extensions?

Lease extensions in Street can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 dealing with Street lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Street Lease Extension Example Cases:

Hugo, Street, Somerset

During the course of the last few months Hugo, started to get near to the 80-year threshold with the lease on his purpose- built flat in Street. Having purchased his property 18 years ago, the length of the lease was of no concern. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Hugo was able to extend his lease at the eleventh hour in May. Hugo and the freeholder via the management company eventually agreed on a premium of £5,500 . If the lease had dipped to less than eighty years, the sum would have become more exhorbitant by a minimum £1,125.

Street case:

Ms Courtney Hill purchased a first floor apartment in Street in September 1999. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable homes in Street with an extended lease were worth £205,000. The average ground rent payable was £50 collected every twelve months. The lease concluded in 2104. Having 78 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.

Street case:

In 2009 we were contacted by Mrs G Michel who, having was assigned a lease of a one bedroom flat in Street in July 2011. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Street with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 invoiced monthly. The lease ran out on 14 May 2093. Considering the 67 years remaining we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 plus fees.