Top reasons for Street lease extension

Top reasons for lease extension now:

Increase your lease and increase your Street property value

When it comes to long leasehold premises in Street, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Street with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.

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

Leasehold premises in Street with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not grant a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically lenders were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Using our service will provide you enhanced control over the value of your Street leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Street Lease Extension Case Studies:

Omar, Street, Somerset

Last October Omar, came precariously near to the 80-year threshold with the lease on his ground floor flat in Street. In buying his home two decades ago, the length of the lease was of little bearing. Luckily, he recognised he needed to take steps soon on a lease extension. Omar was able to extend his lease just ahead of time last September. Omar and the landlord ultimately agreed on an amount of £5,500 . If he had missed the deadline, the amount would have gone up by at least £1,100.

Street case:

In 2012 we were contacted by Dr Aimee Rogers who, having took over the lease of a basement flat in Street in August 2011. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparable residencies in Street with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 billed annually. The lease concluded in 2097. Having 71 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.

Street case:

In 2009 we were phoned by Dr C Williams who, having completed a basement flat in Street in March 2007. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar homes in Street with a long lease were in the region of £230,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease expired in 2086. Given that there were 60 years left we estimated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of professional charges.