Why you should start your Dersingham lease extension

Why you should commence your Dersingham lease extension today:

Increase your lease and increase your Dersingham property value

Dersingham leases on domestic deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Flat owners in Dersingham will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.

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

Leasehold residencies in Dersingham with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to loan monies on a short lease

The propensity since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically banks 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.

Why use us for your lease extension in Dersingham?

Regardless of whether you are a tenant or a freeholder in Dersingham,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 Dersingham valuers.

Dersingham Lease Extension Example Cases:

Ashleigh, Dersingham, Norfolk,

Trailing lengthy correspondence with the landlord of her purpose-built apartment in Dersingham, Ashleigh started the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was concluded in January 2012. The landlord’s fees were kept to an absolute minimum.

Dersingham case:

Last Summer we were called by Dr B Lee , who purchased a studio flat in Dersingham in February 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical flats in Dersingham with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease lapsed in 2081. Considering the 55 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.

Dersingham case:

Dr E Lee bought a one bedroom flat in Dersingham in September 2000. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical flats in Dersingham with a long lease were worth £235,200. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 16 March 2092. Given that there were 66 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.