Top reasons for West Moors lease extension

Main reasons to commence your West Moors lease extension today:

A West Moors lease depreciates with the years remaining on the lease.

With a long leasehold property in West Moors, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years left. Residents in West Moors with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once the lease term has under eighty years outstanding, under the current statute the freeholder can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold properties in West Moors with over 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not finance a property on a short lease

Mortgage companies will not lend on short residential leases. You most probably experience problems if you need to sell your flat in West Moors if the unexpired term of your lease is below the criteria set by most lenders. Different lenders have different requirements but on the whole theyrequire a minimum remaining lease term of 65 years.

What makes us experts in West Moors lease extensions?

Regardless of whether you are a tenant or a freeholder in West Moors,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Moors valuers.

West Moors Lease Extension Case Studies:

Luca, West Moors, Dorset

Last October Luca, came precariously close to the eighty-year threshold with the lease on his first floor flat in West Moors. In buying his flat two decades ago, the length of the lease was of little relevance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Luca was able to extend his lease at the eleventh hour last May. Luca and the freeholder eventually agreed on a premium of £5,000 . If the lease had dropped to less than eighty years, the price would have gone up by a minimum £1,150.

West Moors case:

Dr Rory Nguyen moved into a one bedroom apartment in West Moors in June 2006. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar homes in West Moors with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 collected yearly. The lease ran out in 2080. Taking into account 54 years outstanding we approximated the premium to the landlord for the lease extension to be within £35,200 and £40,600 exclusive of professional charges.

West Moors case:

In 2012 we were e-mailed by Mr and Mrs. R Flores who, having completed a basement apartment in West Moors in November 1998. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical homes in West Moors with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed per annum. The lease lapsed in 2100. Taking into account 74 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.