Main reasons to commence your Sudbury lease extension

Why you should start your Sudbury lease extension today:

Increase your lease and increase your Sudbury property value

The only way is down when it comes to Sudbury lease terms. Sudbury leaseholds that have a residual term lower than eighty years will de-escalate in value even faster, and the cost of extending your lease will go up.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lenders may not issue a mortgage on a short lease

The propensity since 2008 has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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 lawyer we work with provide it.

Sudbury Lease Extension Example Cases:

Zachary, Sudbury, Suffolk,

Zachary owned a 2 bedroom flat in Sudbury being marketed with a lease of fraction over 59 years remaining. Zachary informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Sudbury case:

Last year we were contacted by Ms M White , who moved into a studio flat in Sudbury in January 1999. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar premises in Sudbury with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 6 September 2095. Considering the 69 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.