Top reasons for West Molesey lease extension

Top reasons for lease extension now:

A West Molesey leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in West Molesey is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be addressed well before the 80 year threshold. Current legislation enables West Molesey qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The purpose of the valuation is to arrive at an opinion of 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 generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.

Lending institutions may not issue a mortgage with a short lease

The propensity since 2008 has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in West Molesey?

Using our service gives you enhanced control over the value of your West Molesey leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

West Molesey Lease Extension Example Cases:

Jayden, West Molesey, Surrey,

Jayden was the the leasehold proprietor of a high value apartment in West Molesey being sold with a lease of just over 59 years outstanding. Jayden on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured satisfactory resolution without going to tribunal and sell the property.

West Molesey case:

Last month we were contacted by Mr Jacob Díaz , who bought a garden flat in West Molesey in July 1999. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Identical homes in West Molesey with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected annually. The lease termination date was in 2103. Considering the 77 years outstanding we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.