Top reasons for Ely lease extension

Why you should start your Ely lease extension today:

Increase your lease and increase your Ely property value

The value of Ely leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years

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

Leasehold properties in Ely with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may decide not to lend on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Ely?

The conveyancing solicitors 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 conveyancing solicitor we work with provide it.

Ely Lease Extension Case Studies:

Mia, Ely, Cambridgeshire,

After lengthy discussions with the landlord of her first floor flat in Ely, Mia initiated the lease extension process as the eighty year deadline was rapidly coming. The legal work was finalised in April 2013. The freeholder’s fees were kept to an absolute minimum.

Ely case:

In 2012 we were approached by Mr Leo Sharif who, having took over the lease of a basement apartment in Ely in November 2010. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Similar homes in Ely with 100 year plus lease were valued about £240,600. The average ground rent payable was £65 collected monthly. The lease finished in 2088. Given that there were 62 years as a residual term we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including costs.

Ely case:

Last Summer we were contacted by Mr P Lambert , who purchased a recently refurbished flat in Ely in April 2000. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Similar homes in Ely with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 billed every twelve months. The lease elapsed in 2077. Given that there were 51 years left we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.