Main reasons to commence your Sturminster Newton lease extension

Why you should start your Sturminster Newton lease extension today:

A Sturminster Newton leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sturminster Newton may extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Sturminster Newton lease extension. Putting off that expense now simply escalates the price you will ultimately be required to pay to extend the lease.

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

Leasehold properties in Sturminster Newton with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to issue a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to become nervous at around 75 years. This may cause difficulties when you wish to dispose of or refinance your flat as it will be effectively unmortgageable. You may have no immediate plan to sell but when you do your buyer must wait a couple of years before they can start the legal procedures for an extension to the lease.

What makes us experts in Sturminster Newton lease extensions?

Irrespective of whether you are a tenant or a freeholder in Sturminster Newton,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 Sturminster Newton valuers.

Sturminster Newton Lease Extension Case Summaries:

Blake, Sturminster Newton, Dorset,

Blake owned a 2 bedroom flat in Sturminster Newton on the market with a lease of a little over 59 years outstanding. Blake informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert legal guidance and secured an acceptable deal informally and readily saleable.

Sturminster Newton case:

In 2010 we were approached by Mr Archie Cooper who, having was assigned a lease of a one bedroom apartment in Sturminster Newton in August 1996. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical homes in Sturminster Newton with an extended lease were valued around £216,000. The average ground rent payable was £60 invoiced yearly. The lease terminated in 2084. Given that there were 58 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.

Sturminster Newton case:

Last February we were approach by Mr and Mrs. U Díaz , who owned a one bedroom flat in Sturminster Newton in June 1997. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Sturminster Newton with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 collected every twelve months. The lease ended in 2104. Taking into account 78 years unexpired we calculated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of costs.