Top reasons for Long Eaton lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Long Eaton depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded prior to the eighty year threshold. Statute entitles Long Eaton qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Long Eaton property with a lease extension is almost the same value as a freehold

Leasehold premises in Long Eaton with more than one hundred 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

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

Almost all mortgage lenders insist on a lengthy amount of time remaining on any leasehold residence before they will contemplate lending on it. Even if you don't require a mortgage, you should bear in mind that it is likely that someone wishing to purchase your property in the future might well do, so if they can't get a mortgage, then the market price of the property will likely suffer. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are willing to accept

Get in touch with one of our Long Eaton lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with undertake Long Eaton 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 lawyer we work with provide it.

Long Eaton Lease Extension Case Summaries:

Alexandra, Long Eaton, Derbyshire,

Following unsuccessful negotiations with the landlord of her purpose-built apartment in Long Eaton, Alexandra commenced the lease extension process as the 80 year deadline was quickly approaching. The legal work was finalised in August 2010. The freeholder’s fees were kept to an absolute minimum.

Long Eaton case:

Mr and Mrs. R Rivera took over the lease of a purpose-built apartment in Long Eaton in March 2004. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Long Eaton with a long lease were valued around £225,800. The average amount of ground rent was £60 invoiced quarterly. The lease ended in 2086. Taking into account 60 years as a residual term we estimated the premium to the landlord to extend the lease to be between £25,700 and £29,600 plus legals.

Long Eaton case:

Last Spring we were contacted by Mr Edward Walker , who completed a one bedroom apartment in Long Eaton in November 2001. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar premises in Long Eaton with a long lease were worth £210,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated on 15 February 2106. Taking into account 80 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.