Top reasons for Lavenham lease extension

Why you should start your Lavenham lease extension today:

Increase your lease and increase your Lavenham property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Lavenham. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Lavenham have the right to extend the lease for an additional ninety years under statute. You should give due consideration before delaying your Lavenham lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension

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

It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.

Lenders will not lend on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

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

Lavenham Lease Extension Case Studies:

Toby, Lavenham, Suffolk,

Toby was the the leasehold owner of a 2 bedroom apartment in Lavenham on the market with a lease of fraction over fifty eight years remaining. Toby on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Lavenham case:

Dr B Hall acquired a garden apartment in Lavenham in November 2004. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Lavenham with an extended lease were worth £260,000. The average ground rent payable was £50 invoiced quarterly. The lease lapsed on 23 August 2098. Considering the 72 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.

Lavenham case:

In 2010 we were called by Mr Hunter Roberts who, having bought a purpose-built apartment in Lavenham in November 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical homes in Lavenham with an extended lease were in the region of £256,600. The average ground rent payable was £60 invoiced every twelve months. The lease finished in 2078. Given that there were 52 years remaining we estimated the premium to the landlord for the lease extension to be within £41,800 and £48,400 exclusive of legals.