Why you should commence your Ditchling lease extension

Top reasons for lease extension now:

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

With a domestic leasehold property in Ditchling, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Ditchling with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once the lease term has under 80 years outstanding, under the relevant statute the freeholder can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold premises in Ditchling with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not grant a mortgage on a short lease

Lenders do not like short residential leases. You most probably experience problems where you want to sell your flat in Ditchling if the unexpired lease term is below the criteria set by the majority of banks and building societies. Different lenders have varying criteria but in the main theyrequire a minimum remaining lease term of 65 years.

Why use us for your lease extension in Ditchling?

Regardless of whether you are a tenant or a landlord in Ditchling,the lease extension solicitors that we work with will always be prepared 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 Case Summaries:

Ellen, Ditchling, East Sussex,

Trailing lengthy correspondence with the landlord of her two bedroom apartment in Ditchling, Ellen commenced the lease extension process just as the lease was nearing the critical eighty-year mark. The legal work completed in August 2005. The freeholder’s costs were restricted to below five hundred pounds.

Ditchling case:

Last Winter we were approach by Mr Joseph Rodríguez , who moved into a basement apartment in Ditchling in July 2007. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Comparative premises in Ditchling with 100 year plus lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease termination date was on 17 September 2083. Taking into account 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.

Ditchling case:

Mr and Mrs. Y Stewart moved into a recently refurbished apartment in Ditchling in June 2009. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Ditchling with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease lapsed on 5 February 2094. Considering the 68 years left we estimated the premium to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of legals.