Main reasons to commence your Montpelier lease extension

Top reasons for lease extension now:

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

Montpelier leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Montpelier enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Montpelier you really ought to see if your lease has between 70 and 90 years left. There are compelling reasons why a Montpelier flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not lend with a short lease

Most mortgage lenders insist on a lengthy amount of time left on any leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should keep in mind that it is reasonable to assume that someone wishing to buy your property in the future might well do, so if they are not able to secure a mortgage, then the financial worth of your property will likely be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to lend on

What makes us experts in Montpelier lease extensions?

The conveyancing solicitors that we work with procure Montpelier 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 lawyer we work with provide it.

Montpelier Lease Extension Case Studies:

Theo, Montpelier, Bristol

Two years ago Theo, came seriously near to the eighty-year mark with the lease on his ground floor apartment in Montpelier. In buying his property two decades ago, the unexpired term was of no concern. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Theo was able to extend his lease just under the wire in August. Theo and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had slid lower than eighty years, the figure would have escalated by at least £950.

Montpelier case:

Mr Jacob Clark took over the lease of a one bedroom flat in Montpelier in March 2004. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Comparable residencies in Montpelier with a long lease were worth £196,400. The average ground rent payable was £55 collected monthly. The lease ended on 23 February 2080. Given that there were 54 years unexpired we estimated the premium to the landlord for the lease extension to be within £35,200 and £40,600 plus professional charges.

Montpelier case:

Last year we were approach by Mr and Mrs. U Wilson , who bought a recently refurbished flat in Montpelier in June 2009. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Identical residencies in Montpelier with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed on 23 February 2100. Having 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.