Top reasons for Eye lease extension

Main reasons to start your Eye lease extension today:

A Eye lease depreciates with the years remaining on the lease.

The market value of Eye 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 increase materialy once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold properties in Eye with more than one hundred years unexpired 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not loan monies on a short lease

The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Eye lease extensions?

The conveyancers that we work with undertake Eye 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.

Eye Lease Extension Example Cases:

Henry, Eye, Suffolk,

Henry was the the leasehold proprietor of a high value apartment in Eye being sold with a lease of a little over 61 years remaining. Henry on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Henry to invoke his statutory right. Henry obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.

Eye case:

In 2010 we were phoned by Mr and Mrs. H Baker who, having bought a one bedroom apartment in Eye in May 2004. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable flats in Eye with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed in 2089. Taking into account 63 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus expenses.

Eye case:

Last Autumn we were phoned by Mr K Nguyen , who took over the lease of a studio flat in Eye in September 2000. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Eye with a long lease were in the region of £265,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ended in 2100. Taking into account 74 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.