Top reasons for East Coker lease extension

Why you should start your East Coker lease extension today:

Increase your lease and increase your East Coker property value

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

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

Leasehold premises in East Coker with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders will not finance a property on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. In the past 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 standard.

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

The conveyancers that we work with undertake East Coker 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 conveyancing solicitor we work with provide it.

East Coker Lease Extension Case Summaries:

Connor, East Coker, Somerset

In 2014 Connor, started to get near to the 80-year mark with the lease on his garden flat in East Coker. Having bought his home twenty years previously, the lease term was of little significance. Luckily, he noticed he needed to take steps soon on a lease extension. Connor arranged for a lease extension at the eleventh hour in July. Connor and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If the lease had slid below eighty years, the figure would have gone up by a minimum £1,075.

East Coker case:

In 2012 we were phoned by Mr B David who, having owned a basement flat in East Coker in April 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in East Coker with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated on 14 April 2090. Having 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.

East Coker case:

In 2009 we were called by Dr Ben Gray who, having purchased a one bedroom apartment in East Coker in June 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar residencies in East Coker with an extended lease were in the region of £184,000. The mid-range ground rent payable was £55 invoiced monthly. The lease ended on 1 July 2079. Given that there were 53 years remaining we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.