Why you should start your Arkley lease extension

Why you should commence your Arkley lease extension today:

A Arkley lease depreciates with the years remaining on the lease.

The nearer a residential lease in Arkley nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. Many flat owners in Arkley will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Arkley property with a lease extension has roughly the same value as a freehold

Leasehold properties in Arkley with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to finance a property on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has meant 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 are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Lease extensions in Arkley can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 Arkley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Arkley Lease Extension Example Cases:

Aiden, Arkley, North London

Last October Aiden, came seriously near to the eighty-year mark with the lease on his one bedroom flat in Arkley. Having purchased his property two decades ago, the length of the lease was of no importance. by good luck, he became aware that he would soon be paying way over the odds for Extending the lease. Aiden extended the lease just in the nick of time last May. Aiden and the landlord in the end agreed on the final figure of £6,000 . If the lease had fallen below eighty years, the premium would have gone up by a minimum £1,000.

Arkley case:

Mr and Mrs. C Roux acquired a ground floor flat in Arkley in June 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Arkley with a long lease were worth £206,200. The average ground rent payable was £60 invoiced every twelve months. The lease terminated on 16 June 2082. Given that there were 56 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.