Top reasons for Templecombe lease extension

Why you should commence your Templecombe lease extension today:

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

The value of Templecombe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is below than eighty years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Templecombe with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders may decide not to loan monies with a short lease

The trend since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Templecombe?

The conveyancers that we work with undertake Templecombe 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.

Templecombe Lease Extension Case Summaries:

Anna, Templecombe, Somerset,

Following protracted negotiations with the landlord of her two bedroom flat in Templecombe, Anna started the lease extension process as the 80 year deadline was rapidly advancing. The lease extension completed in August 2005. The freeholder’s charges were kept to an absolute minimum.

Templecombe case:

Last June we were e-mailed by Mr and Mrs. G Moore , who purchased a garden apartment in Templecombe in February 1996. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Templecombe with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 billed every twelve months. The lease elapsed in 2093. Given that there were 67 years remaining we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.

Templecombe case:

In 2011 we were phoned by Dr Lucas Mason who, having took over the lease of a studio apartment in Templecombe in February 2003. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar properties in Templecombe with a long lease were worth £206,200. The average ground rent payable was £55 collected annually. The lease terminated on 25 July 2082. Considering the 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.