Why you should commence your Framlingham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Framlingham property value

The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Framlingham can extend the lease for a further 90 years under legislation. Do think carefully before delaying your Framlingham lease extension. Postponing the costs today simply escalates the premium you will ultimately have to pay for a lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Framlingham with in excess of 100 years unexpired 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders will not finance a property on a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Framlingham lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Framlingham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Framlingham valuers.

Framlingham Lease Extension Example Cases:

Stanley, Framlingham, Suffolk

Half a year ago Stanley, came critically close to the eighty-year mark with the lease on his garden flat in Framlingham. Having bought his flat two decades ago, the length of the lease was of minimal bearing. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Stanley was able to extend his lease just under the wire in January. Stanley and the freeholder via the management company ultimately agreed on a premium of £5,500 . If the lease had dipped below eighty years, the price would have become more costly by a minimum £1,100.

Framlingham case:

In 2012 we were called by Dr U Alexander who, having bought a basement apartment in Framlingham in April 1996. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar homes in Framlingham with a long lease were valued around £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease terminated in 2095. Taking into account 69 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.

Framlingham case:

Last June we were e-mailed by Mr and Mrs. I Garcia , who owned a studio apartment in Framlingham in September 2012. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Framlingham with 100 year plus lease were valued about £216,000. The average amount of ground rent was £60 billed yearly. The lease elapsed on 1 January 2084. Considering the 58 years outstanding we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.