Top reasons for Temple lease extension

Why you should commence your Temple lease extension today:

A Temple lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a Temple domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Temple will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Temple with over one hundred years outstanding on the lease are sometimes 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 freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to issue a mortgage on a short lease

Banks and building societies are tightening their criteria and many now want flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Considering a number of flats in Temple were created in the fifties, sixties and seventies this means many now need to be extended if they wish to obtain a mortgage.

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

The lawyers that we work with undertake Temple 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 conveyancing solicitor we work with provide it.

Temple Lease Extension Example Cases:

Emily, Temple, London,

Trailing protracted negotiations with the freeholder of her basement apartment in Temple, Emily commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in January 2006. The landlord’s costs were kept to an absolute minimum.

Temple case:

Mr and Mrs. S Mitchell owned a first floor flat in Temple in August 2012. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Temple with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease came to a finish in 2083. Considering the 57 years remaining we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including fees.