Why you should commence your Turvey lease extension

Why you should commence your Turvey lease extension today:

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

The market value of a leasehold property in Turvey is impacted by how long the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised prior to the 80 year cut off point. Leasehold Reform legislation entitles Turvey qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

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

Lending institutions may decide not to finance a property on a short lease

Banks and Building Societies have specific criteria when loaning funds charged on leasehold homes. Some will simply refuse lend at all once the remaining lease term goes below a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining below seventy years as acceptable security. In addition to this being important when selling, it is also relevant where you are wanting to remortgage your Turvey home.

What makes us experts in Turvey lease extensions?

Using our service will provide you better control over the value of your Turvey leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Turvey Lease Extension Case Summaries:

Henry, Turvey, Bedfordshire

During the course of the last few months Henry, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Turvey. Having bought his home 18 years previously, the lease term was of no significance. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Henry extended the lease just ahead of time last March. Henry and the freeholder via the management company subsequently settled on the final figure of £5,000 . If the lease had descended lower than eighty years, the sum would have gone up by a minimum £1,150.

Turvey case:

Ms M Simon completed a ground floor apartment in Turvey in June 2007. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparative residencies in Turvey with an extended lease were in the region of £265,000. The average ground rent payable was £50 invoiced per annum. The lease ended on 21 March 2100. Having 74 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.

Turvey case:

Mr Sebastian Howard purchased a ground floor apartment in Turvey in April 2005. The question was if we could approximate the price would be to extend the lease by 90 years. Similar properties in Turvey with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed on 22 September 2080. Taking into account 54 years outstanding we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including costs.