Top reasons for Empingham lease extension

Top reasons for lease extension now:

A Empingham lease 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. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Empingham. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Empingham have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful deliberation before delaying your Empingham lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.

Lending institutions will not lend on a short lease

Lending institutions have specific criteria when loaning funds secured on leasehold property. Some will simply not lend at all once the remaining lease term drops under a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as adequate security. As well as this being important when selling, it is also relevant if you are intending to refinance your Empingham home.

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

Engaging our service will provide you better control over the value of your Empingham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Empingham Lease Extension Case Summaries:

Holly, Empingham, Rutland,

After unsuccessful correspondence with the landlord of her first floor apartment in Empingham, Holly started the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction was finalised in March 2014. The landlord’s fees were negotiated to less than 450 pounds.

Empingham case:

Dr N Rivera purchased a purpose-built flat in Empingham in January 2010. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable properties in Empingham with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 billed annually. The lease came to a finish on 22 March 2087. Considering the 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including costs.

Empingham case:

Last Spring we were contacted by Mr Jack Richardson , who bought a studio flat in Empingham in July 2006. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Empingham with 100 year plus lease were valued about £171,800. The average ground rent payable was £55 billed yearly. The lease elapsed in 2076. Taking into account 50 years unexpired we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.