Top reasons for Tetbury lease extension

Why you should start your Tetbury lease extension today:

Increase your lease and increase your Tetbury property value

Tetbury leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Tetbury will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same 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.

Lenders may decide not to issue a mortgage on a short lease

Many banks and building societies will not lend on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this will result in your Tetbury property becoming difficult to dispose of or to obtain finance on.

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

Using our service gives you better control over the value of your Tetbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Tetbury Lease Extension Example Cases:

Leo, Tetbury, Gloucestershire

Two years ago Leo, came very near to the eighty-year mark with the lease on his purpose- built flat in Tetbury. In buying his home 18 years previously, the length of the lease was of no concern. by good luck, he realised he needed to take steps soon on Extending the lease. Leo was able to extend his lease just in the nick of time last April. Leo and the freeholder in the end settled on an amount of £5,500 . If the lease had dipped to less than eighty years, the premium would have become more costly by a minimum £900.

Tetbury case:

Last month we were called by Mr and Mrs. U Martínez , who moved into a purpose-built apartment in Tetbury in July 1999. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Similar homes in Tetbury with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 collected quarterly. The lease finished in 2079. Taking into account 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including costs.

Tetbury case:

Mr Charlie Martinez moved into a one bedroom apartment in Tetbury in September 1995. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable properties in Tetbury with 100 year plus lease were in the region of £220,400. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated on 23 October 2090. Taking into account 64 years remaining we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of legals.