Why you should commence your Immingham lease extension

Main reasons to commence your Immingham lease extension today:

Increase your lease and increase your Immingham property value

Immingham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Immingham tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Immingham you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

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

Leasehold residencies in Immingham with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions will not grant a mortgage on a short lease

Mortgage companies are really restricting their approach as regards to homes in Immingham with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus narrowing the number of potential buyers.

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

The conveyancers that we work with handle Immingham 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 lawyer we work with provide it.

Immingham Lease Extension Case Summaries:

Madeleine, Immingham, Lincolnshire,

After lengthy correspondence with the freeholder of her garden flat in Immingham, Madeleine initiated the lease extension process as the eighty year deadline was swiftly coming. The legal work was finalised in November 2006. The freeholder’s fees were restricted to below five hundred GBP.

Immingham case:

In 2014 we were phoned by Mr S Ramírez who, having owned a recently refurbished flat in Immingham in January 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Immingham with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease end date was on 20 March 2099. Having 73 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.

Immingham case:

Mr and Mrs. P Cook completed a studio apartment in Immingham in April 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Immingham with an extended lease were in the region of £264,000. The average amount of ground rent was £60 invoiced monthly. The lease ended in 2079. Having 53 years as a residual term we approximated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus professional charges.