Top reasons for Arkley lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Arkley depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year cut off point. Current legislation enables Arkley qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Arkley property with a lease extension is almost the same value as a freehold

Leasehold properties in Arkley with in excess of one hundred years left on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and estate charges justify it.

Lending institutions will not loan monies on a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should be aware that it is reasonable to assume that someone intending to buy your property in the future might well do, so if they can't obtain a mortgage, then the financial worth of your property will likely suffer. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to accept

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

Regardless of whether you are a tenant or a landlord in Arkley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Arkley valuers.

Arkley Lease Extension Example Cases:

Dylan, Arkley, North London,

Dylan owned a studio flat in Arkley on the market with a lease of a little over 61 years unexpired. Dylan informally approached his landlord a well known local-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 a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Dylan to invoke his statutory right. Dylan procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Arkley case:

In 2009 we were called by Dr E Lambert who, having took over the lease of a first floor flat in Arkley in February 2009. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical residencies in Arkley with a long lease were in the region of £275,000. The average ground rent payable was £65 collected yearly. The lease came to a finish in 2094. Given that there were 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.