Why you should start your Faversham lease extension

Main reasons to commence your Faversham lease extension today:

Increase your lease and increase your Faversham property value

Faversham residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.

Faversham property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies will not lend on a short lease

Lending institutions have specific criteria when lending funds secured on leasehold homes. Many will simply not lend at all once the residual lease term drops below a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant if you are seeking to refinance your Faversham property.

What makes us experts in Faversham lease extensions?

The conveyancing solicitors that we work with handle Faversham 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.

Faversham Lease Extension Example Cases:

Maisie, Faversham, Kent,

Trailing lengthy negotiations with the freeholder of her two bedroom apartment in Faversham, Maisie commenced the lease extension process as the 80 year threshold was swiftly advancing. The transaction was concluded in May 2009. The landlord’s charges were kept to an absolute minimum.

Faversham case:

In 2012 we were phoned by Mr and Mrs. U Gunderson who, having bought a one bedroom apartment in Faversham in September 1997. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparable premises in Faversham with a long lease were worth £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease concluded on 25 July 2099. Having 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.

Faversham case:

Mr and Mrs. P Petit completed a recently refurbished flat in Faversham in March 1995. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Faversham with an extended lease were worth £240,600. The mid-range ground rent payable was £60 collected monthly. The lease elapsed on 27 March 2088. Given that there were 62 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.