Main reasons to start your Godmanchester lease extension

Top reasons for lease extension now:

Increase your lease and increase your Godmanchester property value

Godmanchester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Godmanchester residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Godmanchester you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Godmanchester leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Godmanchester with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may not finance a property with a short lease

Banks and Building Societies have specific criteria when loaning monies charged on leasehold property. Some will simply refuse lend at all once the remaining lease term drops lower than a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years suitable security. In addition to impacting your ability to sell, it is also relevant where you are seeking to refinance your Godmanchester property.

Why use us for your lease extension in Godmanchester?

The conveyancing solicitors that we work with handle Godmanchester 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 conveyancer we work with provide it.

Godmanchester Lease Extension Case Summaries:

Ethan, Godmanchester, Cambridgeshire

During the course of the last few months Ethan, started to get near to the eighty-year mark with the lease on his ground floor flat in Godmanchester. Having bought his property two decades ago, the unexpired term was of minimal concern. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Ethan arranged for a lease extension just under the wire last August. Ethan and the freeholder via the management company eventually settled on sum of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £1,125.

Godmanchester case:

Mr and Mrs. C Moreau completed a first floor apartment in Godmanchester in May 1997. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative premises in Godmanchester with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 8 November 2101. Considering the 75 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.

Godmanchester case:

Mr Zachary Fournier owned a ground floor apartment in Godmanchester in September 2002. The question was if we could approximate the premium could be for a ninety year lease extension. Identical premises in Godmanchester with an extended lease were valued about £250,400. The average ground rent payable was £65 invoiced annually. The lease came to a finish on 1 April 2090. Taking into account 64 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.