Top reasons for Upton Upon Severn lease extension

Top reasons for lease extension now:

Increase your lease and increase your Upton Upon Severn property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Upton Upon Severn. Inevitably, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Upton Upon Severn have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give due attention before delaying your Upton Upon Severn lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease

Upton Upon Severn property with a lease extension is almost the same value as a freehold

Leasehold premises in Upton Upon Severn with over 100 years unexpired 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders will not loan monies on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria 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 unexpired lease term required by lenders has increased. Historically lenders would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Upton Upon Severn lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Upton Upon Severn,the lease extension solicitors 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 Upton Upon Severn valuers.

Upton Upon Severn Lease Extension Case Studies:

Sam, Upton Upon Severn, Worcestershire,

Sam was the the leasehold owner of a studio flat in Upton Upon Severn being marketed with a lease of a little over fifty eight years left. Sam informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Upton Upon Severn case:

Ms S Norbert moved into a ground floor apartment in Upton Upon Severn in November 2007. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar homes in Upton Upon Severn with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease concluded on 14 July 2098. Considering the 72 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.

Upton Upon Severn case:

Last month we were phoned by Dr Dylan Bertrand , who took over the lease of a one bedroom flat in Upton Upon Severn in June 2007. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar properties in Upton Upon Severn with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 billed quarterly. The lease expired in 2087. Taking into account 61 years outstanding we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.