Why you should commence your Leconfield lease extension

Why you should start your Leconfield lease extension today:

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

The market value of Leconfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is below than 80 years

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.

Lending institutions will not issue a mortgage with a short lease

Mortgage lenders have set criteria when loaning monies charged on leasehold property. Many will simply refrain from lending at all once the residual lease term slips below a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant where you are seeking to refinance your Leconfield property.

Why use us for your lease extension in Leconfield?

The conveyancing solicitors that we work with handle Leconfield 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.

Leconfield Lease Extension Example Cases:

Jacob, Leconfield, East Yorkshire,

Jacob owned a 2 bedroom flat in Leconfield on the market with a lease of fraction over 59 years remaining. Jacob informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.

Leconfield case:

Mr and Mrs. T Reed owned a basement flat in Leconfield in June 2002. The question was if we could estimate the price could be to prolong the lease by 90 years. Comparable homes in Leconfield with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease ended in 2101. Taking into account 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.

Leconfield case:

In 2014 we were phoned by Mr D Harris who, having purchased a basement flat in Leconfield in April 1996. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Similar premises in Leconfield with an extended lease were worth £168,800. The average amount of ground rent was £60 billed annually. The lease ended in 2081. Considering the 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.