Why you should commence your East Cowes lease extension

Main reasons to commence your East Cowes lease extension today:

Increase your lease and increase your East Cowes property value

As the the remaining lease term of a East Cowes domestic lease decreases so does its value and therefore the value of your property. If the lease has, beyond 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in East Cowes will qualify for this right; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

East Cowes property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Lenders may not loan monies with a short lease

Mortgage companies do not like short residential leases. You most probably encounter difficulties where you wish to sell your flat in East Cowes if the unexpired term of your lease is less than the criteria set by the majority of lenders. Different lenders have varying criteria but generally theyrequire an unexpired term of at least 65 years.

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

The lawyers that we work with undertake East Cowes 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 conveyancer we work with provide it.

East Cowes Lease Extension Case Summaries:

Isabella, East Cowes, Isle Of Wight,

Off the back of lengthy negotiations with the landlord of her two bedroom apartment in East Cowes, Isabella started the lease extension process as the 80 year deadline was rapidly nearing. The lease extension was finalised in October 2012. The landlord’s fees were kept to an absolute minimum.

East Cowes case:

Last Spring we were approach by Mr W Thompson , who completed a first floor flat in East Cowes in March 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in East Cowes with a long lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease came to a finish in 2094. Considering the 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.

East Cowes case:

In 2009 we were phoned by Mr Ali Khan who, having completed a purpose-built flat in East Cowes in January 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in East Cowes with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 invoiced per annum. The lease finished in 2105. Taking into account 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.