Top reasons for Tewkesbury lease extension

Top reasons for lease extension now:

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

Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Tewkesbury. Inevitably, the length of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Tewkesbury have the right to extend the lease for a further ninety years under Leasehold Reform legislation. You should give careful attention before delaying your Tewkesbury lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension

Tewkesbury property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not grant a mortgage with a short lease

The trend since the credit crunch 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 granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Regardless of whether you are a tenant or a landlord in Tewkesbury,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tewkesbury valuers.

Tewkesbury Lease Extension Case Studies:

Laura, Tewkesbury, Gloucestershire,

After lengthy negotiations with the freeholder of her two bedroom flat in Tewkesbury, Laura started the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension completed in September 2014. The landlord’s fees were negotiated to under 700 pounds.

Tewkesbury case:

Mr and Mrs. I Collins moved into a basement flat in Tewkesbury in November 2012. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar homes in Tewkesbury with an extended lease were valued about £223,400. The mid-range ground rent payable was £60 invoiced monthly. The lease concluded on 8 May 2085. Taking into account 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including expenses.

Tewkesbury case:

Last Summer we were called by Ms U Baker , who completed a basement apartment in Tewkesbury in June 2010. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Tewkesbury with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 collected yearly. The lease expired in 2105. Given that there were 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.