Why you should commence your Long Eaton lease extension

Why you should start your Long Eaton lease extension today:

A Long Eaton leasehold property depreciates with the years remaining on the lease.

Long Eaton residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

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

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

Mortgage lenders may decide not to finance a property with a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Long Eaton?

Using our service will provide you increased control over the value of your Long Eaton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Long Eaton Lease Extension Example Cases:

Sophia, Long Eaton, Derbyshire,

Subsequent to protracted negotiations with the freeholder of her studio apartment in Long Eaton, Sophia started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was concluded in August 2005. The freeholder’s costs were kept to an absolute minimum.

Long Eaton case:

In 2010 we were called by Mr and Mrs. B Howard who, having bought a garden flat in Long Eaton in June 2010. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar flats in Long Eaton with a long lease were in the region of £201,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expired in 2082. Having 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.

Long Eaton case:

Last Summer we were contacted by Dr Sam Simon , who owned a one bedroom apartment in Long Eaton in June 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Long Eaton with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease termination date was in 2102. Having 76 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.