Main reasons to commence your Lakenham lease extension

Top reasons for lease extension now:

A Lakenham leasehold property depreciates with the years remaining on the lease.

With a residential leasehold premises in Lakenham, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Lakenham with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has below eighty years left, under the current Act the freeholder is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies may not finance a property on a short lease

Almost all banks and building societies require a lengthy amount of time remaining on any leasehold property before they will contemplate providing a mortgage on it. Even if you don't need a mortgage, you should bear in mind that it is likely that someone intending to buy your property in the future might well do, so in the event that they can't get a mortgage, then the value of your property could suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to accept

Why use us for your lease extension in Lakenham?

Irrespective of whether you are a tenant or a freeholder in Lakenham,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 Lakenham valuers.

Lakenham Lease Extension Case Summaries:

Seth, Lakenham, Norfolk

Half a year ago Seth, started to get close to the 80-year mark with the lease on his purpose- built flat in Lakenham. Having purchased his property twenty years ago, the lease term was of no bearing. by good luck, he recognised he would soon be paying an inflated amount for a lease extension. Seth extended the lease just under the wire in April. Seth and the landlord in the end agreed on the final figure of £5,000 . If the lease had dipped lower than 80 years, the amount would have escalated by at least £975.

Lakenham case:

Mrs Stephanie Roberts took over the lease of a ground floor apartment in Lakenham in June 2005. The question was if we could estimate the premium would likely be for a ninety year lease extension. Identical flats in Lakenham with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease elapsed on 17 November 2103. Taking into account 77 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.

Lakenham case:

In 2011 we were e-mailed by Ms Leah Morris who, having purchased a basement flat in Lakenham in July 2003. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Lakenham with a long lease were in the region of £260,200. The average ground rent payable was £65 billed yearly. The lease ended in 2092. Taking into account 66 years left we estimated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 not including professional charges.