Top reasons for Downham Market lease extension

Top reasons for lease extension now:

A Downham Market leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Downham Market. Clearly, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Downham Market have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give due deliberation before putting off your Downham Market lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease

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

Leasehold premises in Downham Market with over one hundred years remaining 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 freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not issue a mortgage with a short lease

The trend since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved 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 Downham Market?

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

Downham Market Lease Extension Case Summaries:

Amy, Downham Market, Norfolk,

In the wake of eight months of lengthy correspondence with the landlord of her basement flat in Downham Market, Amy started the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension completed in July 2012. The landlord’s costs were kept to an absolute minimum.

Downham Market case:

Mr M Moreau took over the lease of a one bedroom apartment in Downham Market in November 2000. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Downham Market with an extended lease were worth £218,000. The average amount of ground rent was £45 billed annually. The lease ended on 20 October 2089. Taking into account 63 years outstanding we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus expenses.

Downham Market case:

Last month we were e-mailed by Mr and Mrs. I Lewis , who took over the lease of a basement apartment in Downham Market in February 2006. The question was if we could approximate the premium would be to extend the lease by an additional years. Similar residencies in Downham Market with a long lease were valued about £265,000. The average amount of ground rent was £55 collected monthly. The lease came to a finish on 15 February 2100. Given that there were 74 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.