Stop! Your Lease Extension in Sturminster Newton Could Be FREE

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Many leaseholders in Sturminster Newton are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Sturminster Newton has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for Sturminster Newton lease extension

Why you should commence your Sturminster Newton lease extension today:

Increase your lease and increase your Sturminster Newton property value

The market value of Sturminster Newton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years

Sturminster Newton property with a lease extension has roughly the same value as a freehold

Leasehold properties in Sturminster Newton with more than one hundred years unexpired on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not lend on a short lease

The trend since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Why use us for your lease extension in Sturminster Newton?

The conveyancers that we work with handle Sturminster Newton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Sturminster Newton Lease Extension Case Studies:

Caitlin, Sturminster Newton, Dorset,

After protracted discussions with the freeholder of her garden flat in Sturminster Newton, Caitlin commenced the lease extension process as the 80 year deadline was swiftly approaching. The lease extension completed in November 2007. The landlord’s costs were restricted to a tad over 500 pounds.

Sturminster Newton case:

In 2014 we were called by Dr Jonathan Mercier who, having purchased a garden flat in Sturminster Newton in March 2000. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable premises in Sturminster Newton with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated on 23 June 2103. Having 77 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.

Sturminster Newton case:

Dr Eli Baker moved into a purpose-built apartment in Sturminster Newton in July 1999. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable residencies in Sturminster Newton with an extended lease were valued around £265,200. The average amount of ground rent was £65 invoiced monthly. The lease elapsed in 2092. Considering the 66 years outstanding we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 plus fees.