Main reasons to start your St Neots lease extension

Main reasons to start your St Neots lease extension today:

Increase your lease and increase your St Neots property value

It’s an underpublicised certainty that a St Neots residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the St Neots property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in St Neots will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies on a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in St Neots lease extensions?

Irrespective of whether you are a tenant or a landlord in St Neots,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Neots valuers.

St Neots Lease Extension Case Studies:

Hannah, St Neots, Cambridgeshire,

Following lengthy negotiations with the landlord of her studio apartment in St Neots, Hannah commenced the lease extension process just as her lease was approaching the all-important 80-year deadline. The lease extension was finalised in April 2009. The landlord’s fees were restricted to less than four hundred pounds.

St Neots case:

Mrs Freya Peterson completed a studio flat in St Neots in June 2007. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative residencies in St Neots with an extended lease were valued around £246,800. The average ground rent payable was £60 collected annually. The lease lapsed in 2076. Considering the 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 not including expenses.

St Neots case:

Mr and Mrs. N Murphy owned a first floor flat in St Neots in February 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in St Neots with an extended lease were worth £208,200. The average amount of ground rent was £65 collected per annum. The lease expired on 3 July 2087. Considering the 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.