Main reasons to commence your Montpelier lease extension

Main reasons to start your Montpelier lease extension today:

A Montpelier leasehold property depreciates with the years remaining on the lease.

Montpelier leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Montpelier will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.

Montpelier property with a lease extension has roughly the same value as a freehold

Leasehold properties in Montpelier with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may not loan monies on a short lease

Many mortgage companies will be unwilling to lend on a lease with less than 70 years left to run - although this varies between mortgage companies. A purchaser will no doubt find it difficult in obtaining a mortgage and this could result in your Montpelier property becoming difficult to dispose of or remortgage.

Get in touch with one of our Montpelier lease extension solicitors or enfranchisement solicitors

Lease extensions in Montpelier can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Montpelier lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Montpelier Lease Extension Example Cases:

Jessica, Montpelier, Bristol,

After unsuccessful negotiations with the landlord of her garden flat in Montpelier, Jessica commenced the lease extension process just as her lease was nearing the crucial eighty-year deadline. The transaction was finalised in July 2014. The landlord’s costs were kept to an absolute minimum.

Montpelier case:

In 2012 we were phoned by Dr Katie Wright who, having owned a purpose-built flat in Montpelier in February 1995. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable flats in Montpelier with 100 year plus lease were in the region of £171,800. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed on 12 October 2076. Taking into account 50 years remaining we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus fees.

Montpelier case:

Dr Noah Clark acquired a ground floor flat in Montpelier in March 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Montpelier with an extended lease were worth £280,000. The average amount of ground rent was £45 collected annually. The lease ended in 2096. Taking into account 70 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.