Top reasons for Telford lease extension

Why you should start your Telford lease extension today:

Increase your lease and increase your Telford property value

Telford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Telford tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Telford you would be well advised to investigate if your lease has between 70 and 90 years left. There are good reasons why a Telford leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.

Lenders may not issue a mortgage with a short lease

Banks and building societies are tightening their criteria and many now want flats to have at least sixty if not seventy years remaining at the end of the mortgage. Considering a number of flats in Telford were created in the fifties, sixties and seventies this means many now need to be extended if they wish to get a mortgage.

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

Irrespective of whether you are a tenant or a freeholder in Telford,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 experience and the close ties they enjoy with Telford valuers.

Telford Lease Extension Example Cases:

Milo, Telford, Shropshire

14 months ago Milo, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Telford. In buying his flat 18 years ago, the length of the lease was of minimal importance. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Milo arranged for a lease extension just ahead of time last January. Milo and the freeholder via the managing agents ultimately settled on an amount of £5,000 . If he had missed the deadline, the premium would have escalated by a minimum £975.

Telford case:

In 2014 we were contacted by Dr S Bennett who, having owned a one bedroom flat in Telford in June 2005. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative residencies in Telford with a long lease were valued about £181,600. The average amount of ground rent was £55 collected annually. The lease ended on 3 August 2078. Given that there were 52 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.

Telford case:

Mr and Mrs. T Clark moved into a basement flat in Telford in September 2006. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Telford with an extended lease were in the region of £285,000. The average amount of ground rent was £45 collected monthly. The lease expiry date was in 2098. Considering the 72 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.