Why you should start your Eye lease extension

Why you should start your Eye lease extension today:

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

The 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 escalate significantly once the remaining term is less than 80 years

Eye property with a lease extension is almost the same value as a freehold

Leasehold properties in Eye with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not loan monies on a short lease

Many mortgage companies require a lengthy amount of time remaining on any leasehold residence before they will contemplate providing a mortgage on it. Regardless of whether you need a mortgage, you should be aware that it is reasonable to assume that someone wanting to buy your property in the future might well do, so where they can't obtain a mortgage, then the market price of your property could be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to accept

What makes us experts in Eye lease extensions?

Engaging our service will provide you increased control over the value of your Eye leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Eye Lease Extension Case Studies:

Ryan, Eye, Suffolk,

Ryan was the the leasehold proprietor of a high value flat in Eye on the market with a lease of a few days over 61 years left. Ryan on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Eye case:

Last Summer we were phoned by Ms Molly Howard , who completed a basement flat in Eye in October 2011. The question was if we could approximate the premium would be to extend the lease by an additional years. Identical homes in Eye with a long lease were worth £191,000. The average amount of ground rent was £65 invoiced quarterly. The lease finished in 2084. Considering the 58 years as a residual term we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of professional charges.

Eye case:

Last year we were called by Mr and Mrs. R Nguyen , who completed a one bedroom flat in Eye in February 2006. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Eye with a long lease were in the region of £250,000. The average ground rent payable was £50 billed monthly. The lease lapsed on 24 July 2095. Considering the 69 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.