Main reasons to commence your Sudbury lease extension

Why you should commence your Sudbury lease extension today:

Increase your lease and increase your Sudbury property value

Sudbury leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Sudbury will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Sudbury with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

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

Many banks and building societies will not grant a mortgage on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Sudbury property becoming difficult to sell or refinance.

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

The conveyancing solicitors that we work with procure Sudbury 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 conveyancer we work with provide it.

Sudbury Lease Extension Example Cases:

Evan, Sudbury, Suffolk,

Evan was the the leasehold proprietor of a 2 bedroom flat in Sudbury on the market with a lease of a little over sixty years unexpired. Evan informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.

Sudbury case:

Ms Chantelle Leroy owned a one bedroom apartment in Sudbury in May 1997. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical homes in Sudbury with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expiry date was on 24 January 2099. Given that there were 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.