Why you should commence your Higham Ferrers lease extension

Top reasons for lease extension now:

A Higham Ferrers lease depreciates with the years remaining on the lease.

Higham Ferrers leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher premium will be due. Leasehold owners in Higham Ferrers will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may not finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This may be problematic when you come to sell or refinance your property as it will be effectively unmortgageable. Even though you might not have an immediate desire to sell but when you do your buyer will have to hold off for a couple of years before being able to exercise the right to a an extension to the lease.

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

Retaining our service gives you better control over the value of your Higham Ferrers leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Higham Ferrers Lease Extension Example Cases:

Niamh, Higham Ferrers, Northamptonshire,

After protracted negotiations with the freeholder of her leasehold flat in Higham Ferrers, Niamh commenced the lease extension process as the eighty year mark was quickly nearing. The lease extension was concluded in August 2006. The landlord’s fees were negotiated to under 550 pounds.

Higham Ferrers case:

Last month we were called by Dr A Wilson , who acquired a garden flat in Higham Ferrers in February 1998. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Higham Ferrers with an extended lease were valued about £256,600. The average amount of ground rent was £60 billed every twelve months. The lease ran out on 26 April 2078. Having 52 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £41,800 and £48,400 plus expenses.

Higham Ferrers case:

Last Summer we were called by Ms M David , who moved into a one bedroom flat in Higham Ferrers in January 2008. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Higham Ferrers with a long lease were worth £218,000. The mid-range ground rent payable was £45 collected quarterly. The lease terminated in 2089. Considering the 63 years as a residual term we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of costs.