Top reasons for Temple Mills lease extension

Top reasons for lease extension now:

A Temple Mills leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Temple Mills. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Temple Mills have the right to extend the lease for an additional ninety years in accordance with legislation. Please give careful attention before putting off your Temple Mills lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions will not grant a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Temple Mills?

The conveyancing solicitors that we work with undertake Temple Mills 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.

Temple Mills Lease Extension Case Studies:

Nathaniel, Temple Mills, North East London,

Nathaniel was the the leasehold owner of a studio flat in Temple Mills being sold with a lease of a few days over 61 years left. Nathaniel informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

Temple Mills case:

Last year we were e-mailed by Mr and Mrs. O François , who acquired a one bedroom apartment in Temple Mills in March 2001. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical flats in Temple Mills with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 collected quarterly. The lease end date was in 2081. Taking into account 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.

Temple Mills case:

Last Autumn we were phoned by Mr and Mrs. T Flores , who moved into a ground floor apartment in Temple Mills in June 2009. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Temple Mills with a long lease were valued around £235,200. The average amount of ground rent was £45 billed quarterly. The lease expired on 4 May 2092. Given that there were 66 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.