Main reasons to start your Fairford lease extension

Why you should commence your Fairford lease extension today:

Increase your lease and increase your Fairford property value

The re-sale value of a leasehold property in Fairford is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year mark. Current legislation entitles Fairford qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the sum 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 property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions may not issue a mortgage on a short lease

Banks and building societies are tightening their criteria and many now expect flats to have at least sixty if not seventy years left at the expiry of the mortgage. As a number of flats in Fairford were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

What makes us experts in Fairford lease extensions?

The conveyancers that we work with handle Fairford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Fairford Lease Extension Example Cases:

Harry, Fairford, Gloucestershire,

Harry was the the leasehold owner of a studio flat in Fairford being marketed with a lease of just over 59 years left. Harry informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.

Fairford case:

Last month we were contacted by Dr Nathan Mason , who purchased a ground floor flat in Fairford in January 2005. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Fairford with a long lease were valued about £213,600. The average ground rent payable was £60 billed yearly. The lease finished on 16 October 2083. Considering the 57 years unexpired we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus expenses.

Fairford case:

Last Spring we were contacted by Dr Toby Bernard , who completed a purpose-built flat in Fairford in July 2001. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar homes in Fairford with a long lease were worth £200,000. The average ground rent payable was £50 invoiced annually. The lease expired in 2103. Taking into account 77 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.