Why you should commence your Dersingham lease extension

Main reasons to commence your Dersingham lease extension today:

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

On the balance of probabilities if you own a flat in Dersingham you actually own a long leasehold interest over your property

Dersingham property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Lending institutions may decide not to grant a mortgage with a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria 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 banks has increased. In the past lenders were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Using our service gives you better control over the value of your Dersingham leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Dersingham Lease Extension Example Cases:

Dylan, Dersingham, Norfolk,

Dylan owned a conversion flat in Dersingham being marketed with a lease of fraction over 72 years left. Dylan on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and secured an acceptable deal informally and readily saleable.

Dersingham case:

In 2014 we were contacted by Dr Austin Allen who, having owned a one bedroom flat in Dersingham in July 2010. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparative properties in Dersingham with a long lease were worth £264,000. The average amount of ground rent was £60 billed annually. The lease elapsed on 9 November 2078. Taking into account 53 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including legals.

Dersingham case:

In 2009 we were contacted by Dr Dexter Morgan who, having completed a basement flat in Dersingham in August 2007. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Dersingham with 100 year plus lease were worth £225,400. The average ground rent payable was £45 collected yearly. The lease came to a finish on 22 September 2089. Considering the 64 years remaining we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 plus fees.