Why you should start your Fenstanton lease extension

Top reasons for lease extension now:

A Fenstanton leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Fenstanton. Inevitably, the length of lease left reduces over time. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Fenstanton have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give careful attention before delaying your Fenstanton lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease

An extended lease is almost the same value as a freehold

Leasehold residencies in Fenstanton with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to grant a mortgage with a short lease

Banks and Building Societies have specific criteria when lending monies secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are seeking to refinance your Fenstanton property.

What makes us experts in Fenstanton lease extensions?

Regardless of whether you are a tenant or a landlord in Fenstanton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fenstanton valuers.

Fenstanton Lease Extension Example Cases:

Aiden, Fenstanton, Cambridgeshire

Half a year ago Aiden, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Fenstanton. Having bought his flat twenty years ago, the lease term was of minimal significance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Aiden was able to extend his lease at the eleventh hour last July. Aiden and the freeholder in the end agreed on sum of £5,500 . If he failed to meet the deadline, the price would have gone up by at least £1,000.

Fenstanton case:

Dr George Khan took over the lease of a purpose-built flat in Fenstanton in October 1995. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Fenstanton with 100 year plus lease were worth £242,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2093. Taking into account 67 years outstanding we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of costs.

Fenstanton case:

Mr and Mrs. J Ramírez took over the lease of a first floor flat in Fenstanton in July 1995. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative premises in Fenstanton with 100 year plus lease were valued about £280,000. The average ground rent payable was £55 invoiced yearly. The lease finished on 24 March 2104. Given that there were 78 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.