Top reasons for Arkley lease extension

Main reasons to start your Arkley lease extension today:

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

The market value of a leasehold property in Arkley depends on how long the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year threshold. Statute enables Arkley qualifying lessees to an additional term of 90 years in addition to the remaining term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Lenders will not lend with a short lease

Lenders are really restricting their approach as regards to properties in Arkley with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus limiting the number of potential buyers.

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

The conveyancers that we work with procure Arkley 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.

Arkley Lease Extension Example Cases:

Andrew, Arkley, North London

Twenty four months ago Andrew, started to get near to the 80-year mark with the lease on his garden apartment in Arkley. In buying his flat 18 years previously, the lease term was of no concern. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Andrew extended the lease at the eleventh hour in July. Andrew and the freeholder via the management company ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the figure would have increased by a minimum £975.

Arkley case:

Last Christmas we were contacted by Mr and Mrs. U Scott , who acquired a newly refurbished flat in Arkley in July 2002. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable premises in Arkley with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 billed yearly. The lease ran out on 9 October 2102. Considering the 76 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.