Top reasons for Filey lease extension

Why you should commence your Filey lease extension today:

Increase your lease and increase your Filey property value

Unfortunately that a Filey residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Filey property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. Most flat owners in Filey will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.

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

Leasehold premises in Filey with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to lend with a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Filey lease extensions?

Irrespective of whether you are a tenant or a landlord in Filey,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Filey valuers.

Filey Lease Extension Case Summaries:

Robyn, Filey, North Yorkshire,

Subsequent to protracted negotiations with the freeholder of her studio flat in Filey, Robyn started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work was concluded in January 2005. The landlord’s costs were kept to an absolute minimum.

Filey case:

Ms Tia White purchased a ground floor flat in Filey in August 2011. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Filey with an extended lease were in the region of £275,000. The average ground rent payable was £65 invoiced annually. The lease elapsed in 2094. Having 68 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.

Filey case:

Last month we were phoned by Mr Kian Harris , who purchased a ground floor flat in Filey in February 2012. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar premises in Filey with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 billed quarterly. The lease finished in 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.