Main reasons to start your Fakenham lease extension

Main reasons to start your Fakenham lease extension today:

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

Fakenham leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Fakenham will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Fakenham with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

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

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

Lease extensions in Fakenham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Fakenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Fakenham Lease Extension Example Cases:

Maisie, Fakenham, Norfolk,

Trailing unsuccessful discussions with the landlord of her one bedroom apartment in Fakenham, Maisie commenced the lease extension process as the eighty year deadline was rapidly approaching. The legal work was finalised in August 2006. The freeholder’s costs were restricted to less than 650 GBP.

Fakenham case:

Mr and Mrs. E Bernard purchased a studio flat in Fakenham in October 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Fakenham with an extended lease were in the region of £290,000. The mid-range ground rent payable was £55 collected annually. The lease elapsed on 1 August 2106. Considering the 80 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.

Fakenham case:

In 2014 we were called by Mrs Jasmine Lewis who, having purchased a one bedroom apartment in Fakenham in September 2009. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative flats in Fakenham with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 invoiced annually. The lease ended on 24 January 2086. Considering the 60 years outstanding we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of legals.