Main reasons to commence your Lake lease extension

Main reasons to start your Lake lease extension today:

Increase your lease and increase your Lake property value

The market value of a leasehold property in Lake depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be finalised well before the eighty year threshold. Current legislation enables Lake qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Lake with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders will not finance a property on a short lease

Lenders are tightening their criteria and many now require flats to have at least sixty if not seventy years remaining once the mortgage has expired. Given that plenty of flats in Lake were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Lake lease extensions?

The conveyancing solicitors that we work with handle Lake 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.

Lake Lease Extension Case Summaries:

Aarav, Lake, Isle Of Wight

Last October Aarav, started to get near to the 80-year mark with the lease on his ground floor flat in Lake. In buying his property twenty years previously, the lease term was of little bearing. As luck would have it, he recognised he needed to take steps soon on a lease extension. Aarav was able to extend his lease just in the nick of time in March. Aarav and the landlord ultimately settled on a premium of £5,000 . If the lease had slipped lower than eighty years, the price would have escalated by a minimum £1,150.

Lake case:

In 2014 we were approached by Dr F Cook who, having owned a studio flat in Lake in August 1999. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar premises in Lake with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease expiry date was in 2098. Taking into account 72 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.

Lake case:

Ms Holly Hernández owned a one bedroom flat in Lake in October 2006. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable homes in Lake with an extended lease were valued around £233,200. The average ground rent payable was £60 invoiced monthly. The lease expiry date was on 7 November 2087. Taking into account 61 years left we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 plus legals.