Top reasons for Tanworth In Arden lease extension

Main reasons to commence your Tanworth In Arden lease extension today:

A Tanworth In Arden leasehold property depreciates with the years remaining on the lease.

When it comes to domestic leasehold property in Tanworth In Arden, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Residents in Tanworth In Arden with a lease nearing 81 years left should seriously consider extending it sooner than later. When a lease has under 80 years remaining, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may not finance a property on a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with less than 70 years remaining - although this varies from lender to lender. A buyer will no doubt encounter difficulties to obtain a mortgage and this will result in your Tanworth In Arden property becoming difficult to sell or refinance.

Get in touch with one of our Tanworth In Arden lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Tanworth In Arden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tanworth In Arden valuers.

Tanworth In Arden Lease Extension Case Studies:

Shannon, Tanworth In Arden, Warwickshire,

Trailing protracted correspondence with the freeholder of her garden apartment in Tanworth In Arden, Shannon started the lease extension process as the eighty year deadline was rapidly advancing. The legal work was concluded in September 2012. The freeholder’s fees were kept to an absolute minimum.

Tanworth In Arden case:

Mr Charlie Adams took over the lease of a newly refurbished flat in Tanworth In Arden in November 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Tanworth In Arden with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced per annum. The lease ended in 2078. Considering the 52 years remaining we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.

Tanworth In Arden case:

Last January we were contacted by Mr and Mrs. E Patel , who purchased a garden flat in Tanworth In Arden in June 2001. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Tanworth In Arden with an extended lease were worth £285,000. The average amount of ground rent was £45 billed yearly. The lease terminated on 22 February 2098. Taking into account 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.