Main reasons to commence your Fenstanton lease extension

Top reasons for lease extension now:

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

The value of Fenstanton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is less than 80 years

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

Leasehold residencies in Fenstanton with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions will not issue a mortgage on a short lease

Banks and building societies are really clamping down as regards to homes in Fenstanton with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus limiting the number of potential buyers.

What makes us experts in Fenstanton lease extensions?

The lawyers that we work with handle Fenstanton 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.

Fenstanton Lease Extension Case Studies:

John, Fenstanton, Cambridgeshire,

John owned a conversion flat in Fenstanton being sold with a lease of a little over sixty years left. John on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were John to exercise his statutory right. John obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.

Fenstanton case:

In 2011 we were approached by Mrs I King who, having was assigned a lease of a first floor flat in Fenstanton in March 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Fenstanton with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 collected per annum. The lease ended on 24 January 2085. Having 59 years unexpired we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.

Fenstanton case:

Mr and Mrs. K Wilson bought a purpose-built apartment in Fenstanton in August 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative residencies in Fenstanton with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expired in 2096. Having 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of legals.