Main reasons to commence your Debenham lease extension

Why you should start your Debenham lease extension today:

Increase your lease and increase your Debenham property value

Debenham 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 your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Debenham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Debenham you should investigate if your lease has between seventy and ninety 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 part 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 generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies may not lend on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get jittery at around 75 years. This will be problematic as and when you come to dispose of or refinance your flat as it will be effectively unmortgageable. Even though you may not have an immediate intention to sell but when you do your purchaser will need to hold off for two years before being able to start the legal procedures for a lease extension.

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

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

Debenham Lease Extension Example Cases:

Toby, Debenham, Suffolk

Two years ago Toby, started to get near to the 80-year mark with the lease on his two bedroom flat in Debenham. In buying his flat 18 years ago, the length of the lease was of little relevance. Luckily, he recognised he needed to take action soon on Extending the lease. Toby was able to extend his lease just under the wire last March. Toby and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £900.

Debenham case:

Dr I López bought a studio flat in Debenham in November 2007. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable residencies in Debenham with a long lease were worth £290,000. The mid-range ground rent payable was £45 collected monthly. The lease ran out in 2099. Considering the 73 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.

Debenham case:

Last Summer we were called by Mr T François , who acquired a studio flat in Debenham in February 2003. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative homes in Debenham with a long lease were valued around £240,600. The average ground rent payable was £60 invoiced annually. The lease came to a finish on 3 July 2088. Having 62 years left we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.