Why you should commence your Arundel lease extension

Why you should start your Arundel lease extension today:

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

Arundel leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Arundel enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Arundel you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

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

Banks and building societies are really clamping down as regards to properties in Arundel with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus restricting your market.

What makes us experts in Arundel lease extensions?

Lease extensions in Arundel can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.

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 in-depth market knowledge dealing with Arundel lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Arundel Lease Extension Case Summaries:

Leo, Arundel, West Sussex

Last year Leo, started to get close to the 80-year mark with the lease on his leasehold flat in Arundel. In buying his home two decades ago, the lease term was of little concern. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Leo arranged for a lease extension at the eleventh hour last May. Leo and the landlord ultimately settled on sum of £6,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £975.

Arundel case:

Last January we were phoned by Dr O Peterson , who took over the lease of a one bedroom flat in Arundel in September 2007. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Similar premises in Arundel with an extended lease were worth £265,000. The average amount of ground rent was £50 billed every twelve months. The lease expired in 2100. Given that there were 74 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.

Arundel case:

In 2010 we were contacted by Mr and Mrs. W Gray who, having purchased a basement apartment in Arundel in May 2004. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Arundel with an extended lease were valued around £166,400. The average amount of ground rent was £60 collected per annum. The lease lapsed on 20 January 2080. Given that there were 54 years outstanding we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of costs.