Top reasons for Cromer lease extension

Top reasons for lease extension now:

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

Cromer leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Cromer residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Cromer you should investigate if your lease has between seventy and ninety years left. There are good reasons why a Cromer leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.

Lenders will not finance a property on a short lease

Lenders are really restricting their approach as regards to homes in Cromer with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing your market.

What makes us experts in Cromer lease extensions?

Regardless of whether you are a tenant or a landlord in Cromer,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 experience and the close ties they enjoy with Cromer valuers.

Cromer Lease Extension Example Cases:

Sian, Cromer, Norfolk,

After lengthy correspondence with the freeholder of her two bedroom apartment in Cromer, Sian started the lease extension process just as the lease was coming close to the critical 80-year threshold. The legal work was finalised in May 2014. The freeholder’s charges were negotiated to less than 550 pounds.

Cromer case:

Last Autumn we were contacted by Dr Ali Bertrand , who was assigned a lease of a one bedroom flat in Cromer in June 2011. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar homes in Cromer with 100 year plus lease were valued about £227,800. The mid-range amount of ground rent was £45 collected annually. The lease lapsed on 16 May 2091. Taking into account 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.

Cromer case:

Mr and Mrs. V Roberts purchased a first floor apartment in Cromer in March 2009. The question was if we could estimate the premium would be to extend the lease by 90 years. Similar homes in Cromer with a long lease were worth £275,000. The average ground rent payable was £55 invoiced every twelve months. The lease terminated on 6 November 2102. Having 76 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.