Main reasons to commence your East Cowes lease extension

Top reasons for lease extension now:

A East Cowes lease depreciates with the years remaining on the lease.

The only way is down when it comes to East Cowes lease terms. East Cowes flats that have a remaining term shorter than eighty years will drop in market price even faster, and the cost to extend your lease will go up.

An extended lease is almost the same value as a freehold

Leasehold premises in East Cowes with more than one hundred years left on the lease are often referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders will not finance a property on a short lease

Many mortgage companies will be unwilling to grant a mortgage on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will likely encounter difficulties to obtain a mortgage and this will result in your East Cowes property being difficult to sell or to obtain finance on.

What makes us experts in East Cowes lease extensions?

Using our service gives you increased control over the value of your East Cowes leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

East Cowes Lease Extension Example Cases:

Rachel, East Cowes, Isle Of Wight,

Following unsuccessful negotiations with the freeholder of her two bedroom flat in East Cowes, Rachel initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The legal work was finalised in August 2015. The landlord’s fees were kept to an absolute minimum.

East Cowes case:

In 2011 we were approached by Dr Melissa Morgan who, having was assigned a lease of a garden apartment in East Cowes in February 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical homes in East Cowes with 100 year plus lease were valued about £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease elapsed on 23 February 2086. Having 60 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of legals.

East Cowes case:

Last month we were phoned by Dr D Brooks , who owned a basement apartment in East Cowes in October 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in East Cowes with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 collected every twelve months. The lease terminated in 2097. Given that there were 71 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.