Top reasons for Leven lease extension

Why you should start your Leven lease extension today:

Increase your lease and increase your Leven property value

Leven leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Leven enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Leven you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

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

Leasehold premises in Leven with more than 100 years remaining on the lease are often regarded as a ‘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 buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions will not loan monies with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Leven?

The conveyancing solicitors that we work with handle Leven 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.

Leven Lease Extension Case Studies:

Grace, Leven, East Yorkshire,

Trailing unsuccessful negotiations with the freeholder of her studio flat in Leven, Grace started the lease extension process just as the lease was coming close to the critical eighty-year deadline. The lease extension was finalised in March 2006. The freeholder’s costs were kept to an absolute minimum.

Leven case:

Dr T Laurent purchased a basement flat in Leven in January 2009. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Leven with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 billed annually. The lease expired in 2082. Given that there were 56 years remaining we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including legals.

Leven case:

Mr and Mrs. V Allen acquired a one bedroom flat in Leven in May 2002. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Leven with 100 year plus lease were valued about £237,600. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out on 11 January 2093. Given that there were 67 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of expenses.