Stop! Your Lease Extension in Towcester Could Be FREE

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Many leaseholders in Towcester are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Towcester has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your Towcester lease extension

Why you should commence your Towcester lease extension today:

Increase your lease and increase your Towcester property value

The market value of a leasehold property in Towcester is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed well before the 80 year cut off point. Current legislation enables Towcester qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lenders will not lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become jittery at around 75 years. This will cause difficulties as and when you come to market or refinance your flat as it will be effectively unmortgageable. Even though you might not have an imminent plan to sell but when you do your purchaser will need to hold off for two years before being able to exercise the right to a an extension to the lease.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Halifax Minimum 70 years from the date of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.

What makes us experts in Towcester lease extensions?

Retaining our service will provide you increased control over the value of your Towcester leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Towcester Lease Extension Case Studies:

Aaron, Towcester, Northamptonshire

During the course of the last few months Aaron, came very close to the eighty-year mark with the lease on his purpose- built flat in Towcester. In buying his property twenty years previously, the length of the lease was of little interest. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Aaron was able to extend his lease at the eleventh hour last August. Aaron and the freeholder ultimately agreed on an amount of £6,000 . If he had missed the deadline, the figure would have gone up by at least £1,100.

Towcester case:

In 2012 we were called by Dr Kai Mitchell who, having took over the lease of a studio flat in Towcester in April 2010. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Towcester with 100 year plus lease were valued about £275,000. The average ground rent payable was £65 invoiced annually. The lease terminated on 5 August 2094. Considering the 68 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.

Towcester case:

In 2010 we were e-mailed by Ms Niamh Roberts who, having completed a one bedroom flat in Towcester in November 2004. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Towcester with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease finished on 24 March 2083. Having 57 years left we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.