Why you should commence your Felpham lease extension

Why you should start your Felpham lease extension today:

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

With a long leasehold premises in Felpham, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Felpham with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has fewer than 80 years left, under the current legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.

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

Leasehold residencies in Felpham with over 100 years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not issue a mortgage with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Felpham lease extensions?

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

Felpham Lease Extension Example Cases:

Matthew, Felpham, West Sussex

Twenty four months ago Matthew, started to get near to the 80-year mark with the lease on his ground floor flat in Felpham. Having bought his property two decades ago, the lease term was of little relevance. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Matthew arranged for a lease extension just under the wire last April. Matthew and the freeholder via the managing agents eventually agreed on the final figure of £5,000 . If he not met the deadline, the price would have escalated by a minimum £975.

Felpham case:

Dr Jack Parker bought a first floor apartment in Felpham in March 2006. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Felpham with a long lease were worth £220,400. The mid-range ground rent payable was £45 billed yearly. The lease terminated in 2090. Considering the 64 years outstanding we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of fees.

Felpham case:

In 2014 we were called by Ms Stephanie Green who, having bought a purpose-built apartment in Felpham in October 1995. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Felpham with a long lease were valued about £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease ended in 2101. Taking into account 75 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.