Why you should start your Preston Park lease extension

Top reasons for lease extension now:

A Preston Park leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Preston Park is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Preston Park will qualify for this right; nevertheless a lawyer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Preston Park with more than 100 years unexpired on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders will not issue a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease 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 have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Preston Park lease extension solicitors or enfranchisement solicitors

Lease extensions in Preston Park can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Preston Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Preston Park Lease Extension Case Summaries:

Rebecca, Preston Park, East Sussex,

After unsuccessful correspondence with the landlord of her garden flat in Preston Park, Rebecca initiated the lease extension process as the 80 year mark was swiftly nearing. The lease extension was concluded in November 2014. The freeholder’s costs were kept to an absolute minimum.

Preston Park case:

Last Autumn we were contacted by Dr Paige Morel , who took over the lease of a studio flat in Preston Park in September 2007. The question was if we could estimate the premium could be to extend the lease by 90 years. Similar flats in Preston Park with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease termination date was on 13 April 2092. Given that there were 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.

Preston Park case:

In 2014 we were called by Mr and Mrs. D François who, having was assigned a lease of a one bedroom flat in Preston Park in June 1996. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparative properties in Preston Park with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease elapsed on 6 July 2103. Given that there were 77 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.