Main reasons to start your Diss lease extension

Why you should start your Diss lease extension today:

Increase your lease and increase your Diss property value

With a long leasehold premises in Diss, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Diss with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once a lease has below eighty years left, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lending institutions may not lend with a short lease

Lending institutions have specific criteria when lending funds charged on leasehold homes. Some will simply refuse lend at all once the residual lease term falls beneath a specified unexpired lease term. Many Lending institutions will not regard property with a remaining term of less than seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to refinance your Diss property.

Why use us for your lease extension in Diss?

The conveyancers that we work with procure Diss lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Diss Lease Extension Example Cases:

Nathaniel, Diss, Norfolk

Last October Nathaniel, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Diss. Having purchased his home two decades ago, the lease term was of minimal bearing. As luck would have it, he became aware that he would soon be paying an inflated amount for a lease extension. Nathaniel arranged for a lease extension at the eleventh hour in June. Nathaniel and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the sum would have escalated by at least £1,100.

Diss case:

Dr L Reed purchased a purpose-built apartment in Diss in July 1995. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Diss with 100 year plus lease were valued about £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease finished in 2083. Given that there were 57 years outstanding we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.

Diss case:

Last year we were contacted by Mr L Brown , who took over the lease of a purpose-built apartment in Diss in April 2005. We are asked if we could estimate the price would be for a ninety year lease extension. Similar premises in Diss with an extended lease were worth £245,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished in 2094. Considering the 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.