Main reasons to commence your Montpelier lease extension

Main reasons to start your Montpelier lease extension today:

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

Montpelier leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be due. Flat owners in Montpelier will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.

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

Leasehold residencies in Montpelier with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not issue a mortgage on a short lease

Banks and Building Societies have specific criteria when lending monies charged on leasehold homes. Some will simply refuse lend at all once the remaining lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than 75 years as acceptable security. As well as this being important when selling, it is also relevant if you are seeking to refinance your Montpelier home.

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

Using our service gives you increased control over the value of your Montpelier leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Montpelier Lease Extension Case Studies:

Millie, Montpelier, Bristol,

Following protracted discussions with the freeholder of her garden flat in Montpelier, Millie started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The lease extension was finalised in October 2011. The freeholder’s costs were kept to an absolute minimum.

Montpelier case:

Last month we were contacted by Dr Alexandra Bernard , who purchased a one bedroom flat in Montpelier in February 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative homes in Montpelier with a long lease were worth £200,000. The average ground rent payable was £50 collected every twelve months. The lease ended in 2103. Given that there were 77 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.

Montpelier case:

Mr E Ricardo purchased a basement apartment in Montpelier in January 1998. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative flats in Montpelier with 100 year plus lease were worth £265,200. The mid-range ground rent payable was £65 invoiced annually. The lease concluded in 2092. Taking into account 66 years unexpired we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus legals.