Main reasons to commence your Ipswich lease extension

Main reasons to commence your Ipswich lease extension today:

Increase your lease and increase your Ipswich property value

The market value of Ipswich leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is less than 80 years

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

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders will not finance a property with a short lease

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

The conveyancing solicitors that we work with undertake Ipswich 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.

Ipswich Lease Extension Case Studies:

Caleb, Ipswich, Suffolk

Last year Caleb, came critically near to the eighty-year mark with the lease on his leasehold flat in Ipswich. Having bought his flat two decades ago, the unexpired term was of minimal concern. by good luck, he became aware that he would imminently be paying an escalated premium for a lease extension. Caleb extended the lease at the eleventh hour in September. Caleb and the landlord eventually settled on an amount of £6,000 . If the lease had descended lower than eighty years, the figure would have become more exhorbitant by at least £1,125.

Ipswich case:

Mr G Bonnet took over the lease of a recently refurbished flat in Ipswich in February 2008. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical flats in Ipswich with a long lease were worth £210,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish on 20 February 2106. Taking into account 80 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.

Ipswich case:

In 2010 we were phoned by Ms Chloe Mercier who, having moved into a one bedroom apartment in Ipswich in July 2002. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable premises in Ipswich with an extended lease were worth £280,000. The average amount of ground rent was £45 collected annually. The lease elapsed on 5 June 2095. Having 69 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.