Why you should commence your Felixstowe lease extension

Main reasons to start your Felixstowe lease extension today:

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

Felixstowe leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Felixstowe will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.

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

Leasehold properties in Felixstowe with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not grant a mortgage with a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with less than seventy years left to run - although this varies from lender to lender. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Felixstowe property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Felixstowe lease extensions?

The conveyancers that we work with procure Felixstowe 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.

Felixstowe Lease Extension Example Cases:

Owen, Felixstowe, Suffolk

Two years ago Owen, came critically close to the eighty-year mark with the lease on his basement flat in Felixstowe. In buying his property twenty years previously, the unexpired term was of no significance. Luckily, he noticed he needed to take steps soon on a lease extension. Owen arranged for a lease extension just in the nick of time in July. Owen and the freeholder ultimately agreed on a premium of £5,000 . If he not met the deadline, the sum would have gone up by at least £875.

Felixstowe case:

Last Winter we were contacted by Ms Phoebe Baker , who was assigned a lease of a purpose-built apartment in Felixstowe in March 2003. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable homes in Felixstowe with an extended lease were worth £200,000. The average ground rent payable was £50 billed quarterly. The lease came to a finish in 2103. Given that there were 77 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.

Felixstowe case:

Last Winter we were phoned by Mr and Mrs. B Green , who was assigned a lease of a studio flat in Felixstowe in August 1998. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in Felixstowe with 100 year plus lease were valued about £260,200. The average amount of ground rent was £65 collected every twelve months. The lease expiry date was in 2092. Taking into account 66 years outstanding we calculated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus costs.