Why you should commence your Elmswell lease extension

Main reasons to start your Elmswell lease extension today:

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

Owning a flat 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 , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Elmswell. Inevitably, the period of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Elmswell have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before delaying your Elmswell lease extension. Holding off that expense now only increases the price you will eventually have to pay for a lease extension

An extended lease is almost the same value as a freehold

It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lenders may decide not to issue a mortgage on a short lease

Banks and Building Societies have set criteria when lending funds charged on leasehold property. Many will simply refuse lend at all once an unexpired lease term falls under a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than seventy years suitable security. As well as this being important when selling, it is also relevant where you are seeking to remortgage your Elmswell property.

What makes us experts in Elmswell lease extensions?

Lease extensions in Elmswell can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Elmswell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Elmswell Lease Extension Example Cases:

Kyle, Elmswell, Suffolk

In 2014 Kyle, started to get near to the 80-year mark with the lease on his studio flat in Elmswell. In buying his flat two decades ago, the length of the lease was of little concern. Luckily, he recognised he would imminently be paying way over the odds for Extending the lease. Kyle arranged for a lease extension at the eleventh hour last May. Kyle and the landlord in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,050.

Elmswell case:

Last Winter we were phoned by Dr J Collins , who took over the lease of a basement flat in Elmswell in January 1998. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in Elmswell with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 invoiced per annum. The lease lapsed in 2097. Having 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.

Elmswell case:

In 2014 we were called by Ms H Turner who, having acquired a purpose-built flat in Elmswell in August 1997. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Elmswell with 100 year plus lease were worth £225,800. The average ground rent payable was £60 collected quarterly. The lease came to a finish on 7 May 2086. Having 60 years unexpired we approximated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including professional charges.