Main reasons to commence your Caistor lease extension

Top reasons for lease extension now:

Increase your lease and increase your Caistor property value

With a residential leasehold premises in Caistor, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years left. Anyone in Caistor with a lease nearing 81 years left should seriously think of extending it sooner than later. When a lease has under 80 years outstanding, under the current Act the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.

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

Leasehold properties in Caistor with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to finance a property on a short lease

The propensity since 2008 has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a landlord in Caistor,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caistor valuers.

Caistor Lease Extension Case Summaries:

Rosie, Caistor, Lincolnshire,

Subsequent to lengthy correspondence with the landlord of her ground floor flat in Caistor, Rosie started the lease extension process as the eighty year deadline was rapidly coming. The transaction completed in July 2006. The freeholder’s fees were kept to an absolute minimum.

Caistor case:

In 2013 we were e-mailed by Dr Reuben Stewart who, having completed a basement apartment in Caistor in October 2006. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Caistor with an extended lease were in the region of £254,200. The average ground rent payable was £60 invoiced monthly. The lease elapsed on 28 July 2077. Taking into account 51 years remaining we approximated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of professional charges.

Caistor case:

Last Autumn we were e-mailed by Mr and Mrs. M Khan , who acquired a first floor apartment in Caistor in June 2010. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Identical premises in Caistor with an extended lease were worth £210,600. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2088. Considering the 62 years outstanding we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.