Peter Rudd AIRPM: 80 Years Or Less On Your Lease? Then You Must Read This!
Leasehold Life is very proud to introduce new company, under80. who specialise in providing a tailored and bespoke service to leaseholders who have 80 years or less on their leases. Founded by Managing Director Colin Horton BSc (Hons), Head of Operations and co-founder Peter Rudd AIRPM, this article breaks down what happens when this crucial point is reached.
This a very significant point in a number of ways not least because the majority of leaseholders’ anticipate the value of their asset to grow in line with the market. The reality though is that as the lease term depreciates, the market value will follow in a similar pattern. Once a lease is under 80 years the property begins to lose its value at a steady rate and will continue to do so until the lease is renewed. A large number of developments in the 80s were sold on leases of 99 years and this trend is becoming more and more common; so much so that it is now unusual to see new leases with anything in excess of 125 years. This movement means that during your leasehold ownership it is quite possible your term will expire to under 80 years; you may even have a short lease right now and not be aware of it.
A short lease can also cause a major problems in the saleability of the property. Extending your lease before a sale will bring the market value back up to its maximum potential but this can be a complicated matter to deal with, and when coupled with the possible loss of a sale this becomes even more so. Quite often the buyer, seller and estate agents are only made aware of the lease length when the solicitors are exchanging information, midway through the buying process. This can leave all parties in a fairly tricky situation as the property immediately becomes a security risk to the majority of mortgage providers. Although mortgage providers differ in their lending strategies there is one thing you can be certain of, a short lease will either prevent a buyer from securing a competitive mortgage or prevent the property from achieving financing at all.
When extending your lease you will almost always be doing so with a freeholder who is experienced in achieving the highest possible value from the arrangement. It is not uncommon for leaseholders to begin negotiations that end up being costly, time consuming and sometimes result in a lease that does not get extended at all! Leaseholders will often pay thousands of pounds more than they should do, either due to inexperience in the matter, or the lack of professional representation and available advice. It is essential to ensure you have a lease extension tailored to your needs so there are various different approaches you can take when starting the process. Some may be more suitable depending on whether you are selling, and others when you are remortgaging or simply looking to maintain the value in your leasehold property.
At under80 we deal with these scenarios on a daily basis and we’re fully equipped to give you the assistance you need in getting the most out of your deal. Our unique approach is specifically tailored to your requirements, our team are experts in the field and they have spent many years negotiating on behalf of both leaseholders and freeholders. This puts us in an exceptional position to give you advice on a freeholders expectations in comparison to what you should actually be paying. Our extensive experience allows us to guide your lease extension in a direction that suits you. We can provide professional advice on the short lease valuation vs the long lease valuation, a realistic price range and what approach to take to minimise the possible loss of the sale.
Whether you’re looking for guidance or full representation we are on hand to provide a bespoke and passionate service. Our goal is to ensure you get the lease extension that is right for you and to give you the peace of mind that the only thing being inflated is the length of your lease.
For more information on the comprehensive services offered by under80 please contact them through the following:
Tel: 01702 328080
Linked In: https://www.linkedin.com/company/under-80