Top reasons for Faversham lease extension

Main reasons to commence your Faversham lease extension today:

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

It’s a harsh truth that a Faversham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Faversham property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Faversham will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.

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

It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies may not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This may be problematic when you need to dispose of or remortgage your property as it will be effectively unmortgageable. You may not have an imminent desire to sell but when you do your purchaser will need to hold off for 2 years before being able to exercise the right to a a lease extension.

Why use us for your lease extension in Faversham?

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 Case Studies:

Aimee, Faversham, Kent,

Off the back of unsuccessful negotiations with the freeholder of her purpose-built apartment in Faversham, Aimee commenced the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work was concluded in February 2008. The freeholder’s fees were negotiated to below 650 GBP.

Faversham case:

Mr and Mrs. E Clark moved into a basement apartment in Faversham in November 1998. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in Faversham with a long lease were worth £240,600. The mid-range ground rent payable was £60 collected monthly. The lease ended in 2088. Having 62 years remaining we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.

Faversham case:

Mr and Mrs. O Turner bought a one bedroom flat in Faversham in July 2004. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical residencies in Faversham with an extended lease were valued about £174,200. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish in 2077. Having 51 years left we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.