Why you should start your Tring lease extension

Why you should commence your Tring lease extension today:

Increase your lease and increase your Tring property value

The market value of Tring 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 escalate substantially once the remaining term is less than eighty years

An extended lease has roughly the same value as a freehold

Leasehold premises in Tring with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not issue a mortgage with a short lease

Mortgage companies are really clamping down as regards to homes in Tring with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus reducing the number of prospective buyers.

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

Engaging our service gives you better control over the value of your Tring leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Tring Lease Extension Example Cases:

Henry, Tring, Hertfordshire,

Henry owned a studio flat in Tring being sold with a lease of fraction over sixty years unexpired. Henry on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and secured an acceptable deal informally and sell the property.

Tring case:

In 2014 we were e-mailed by Mrs Emily Martinez who, having took over the lease of a first floor flat in Tring in February 2004. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Tring with a long lease were worth £290,000. The average ground rent payable was £45 billed yearly. The lease came to a finish on 20 June 2099. Having 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.

Tring case:

Ms U Sharif bought a newly refurbished apartment in Tring in October 2003. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparable residencies in Tring with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2088. Having 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus professional charges.