Why you should commence your Ditchling lease extension

Top reasons for lease extension now:

Increase your lease and increase your Ditchling property value

The market value of Ditchling leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than 80 years

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

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.

Lenders may not finance a property with a short lease

Lending institutions have set criteria when lending monies charged on leasehold property. Many will simply refrain from lending at all once an unexpired lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than 75 years as acceptable security. As well as this being important when selling, it is also relevant if you are intending to refinance your Ditchling home.

Why use us for your lease extension in Ditchling?

Irrespective of whether you are a tenant or a freeholder in Ditchling,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ditchling valuers.

Ditchling Lease Extension Example Cases:

Sam, Ditchling, East Sussex,

Sam owned a studio apartment in Ditchling on the market with a lease of a little over 61 years remaining. Sam informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Ditchling case:

In 2009 we were contacted by Ms F Williams who, having acquired a purpose-built apartment in Ditchling in September 2011. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparable residencies in Ditchling with a long lease were worth £264,000. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed in 2079. Considering the 53 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.

Ditchling case:

Dr S Lefèvre purchased a studio flat in Ditchling in May 2003. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical homes in Ditchling with a long lease were in the region of £225,400. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2090. Having 64 years outstanding we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus fees.