Main reasons to start your Ely lease extension

Why you should commence your Ely lease extension today:

Increase your lease and increase your Ely property value

When it comes to domestic leasehold premises in Ely, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Anyone in Ely with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has fewer than 80 years left, under the relevant legislation the freeholder can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.

Ely property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may not finance a property on a short lease

Banks and building societies are making their criteria more stringent and many now require flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Considering many flats in Ely were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Ely lease extensions?

The lawyers that we work with procure Ely 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.

Ely Lease Extension Case Studies:

Elijah, Ely, Cambridgeshire

Last Summer Elijah, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Ely. Having bought his home 19 years previously, the lease term was of no interest. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Elijah arranged for a lease extension at the eleventh hour in June. Elijah and the freeholder via the management company in the end agreed on the final figure of £5,000 . If the lease had dipped lower than 80 years, the sum would have gone up by at least £925.

Ely case:

Last Autumn we were approach by Mr and Mrs. K Mason , who owned a one bedroom apartment in Ely in February 1998. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Ely with an extended lease were in the region of £216,000. The average amount of ground rent was £60 billed monthly. The lease terminated in 2084. Having 58 years outstanding we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.

Ely case:

Last Christmas we were phoned by Dr O Lee , who moved into a purpose-built flat in Ely in May 1995. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable premises in Ely with an extended lease were valued about £205,000. The average amount of ground rent was £50 invoiced monthly. The lease came to a finish on 10 February 2104. Having 78 years remaining we estimated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 not including costs.