Main reasons to commence your Aylsham lease extension

Main reasons to commence your Aylsham lease extension today:

Increase your lease and increase your Aylsham property value

Aylsham leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher premium will be payable. Leasehold owners in Aylsham will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are also strict deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.

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

Leasehold properties in Aylsham with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lenders will not finance a property on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Aylsham lease extensions?

The conveyancing solicitors that we work with undertake Aylsham 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.

Aylsham Lease Extension Case Summaries:

Samantha, Aylsham, Norfolk,

In the wake of 9 months of lengthy negotiations with the landlord of her ground floor apartment in Aylsham, Samantha initiated the lease extension process as the eighty year deadline was fast coming. The transaction completed in March 2015. The freeholder’s costs were negotiated to less than 500 pounds.

Aylsham case:

In 2014 we were e-mailed by Dr B Walker who, having moved into a newly refurbished apartment in Aylsham in October 2000. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Aylsham with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended on 13 November 2103. Considering the 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.

Aylsham case:

Mr and Mrs. T Gunderson moved into a one bedroom flat in Aylsham in November 2011. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Aylsham with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed per annum. The lease ended on 2 September 2083. Having 57 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.