Why you should commence your Eye lease extension

Why you should commence your Eye lease extension today:

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

As the length of the unexpired term of a Eye residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Eye will qualify for this right; however a conveyancing solicitor will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Eye with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders will not lend with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This may be problematic once you wish to sell or refinance your property as it will be effectively unmortgageable. You might not have an immediate intention to sell but when you do your purchaser will need to wait two years before they can exercise the right to a a lease extension.

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

Retaining our service will provide you better control over the value of your Eye leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Eye Lease Extension Case Studies:

Stanley, Eye, Suffolk

Last October Stanley, started to get close to the 80-year mark with the lease on his first floor apartment in Eye. In buying his flat two decades ago, the lease term was of no significance. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Stanley extended the lease just in the nick of time last September. Stanley and the landlord who owned the flat above in the end agreed on sum of £6,000 . If the lease had dipped to less than 80 years, the figure would have escalated by at least £1,100.

Eye case:

In 2009 we were phoned by Ms S Watson who, having purchased a basement flat in Eye in May 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Eye with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended on 5 August 2096. Taking into account 70 years outstanding we approximated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of legals.

Eye case:

In 2009 we were called by Mr and Mrs. J Peterson who, having bought a basement flat in Eye in September 2004. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar premises in Eye with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 collected annually. The lease concluded on 23 September 2076. Given that there were 50 years left we estimated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus fees.