Top reasons for Lavenham lease extension

Why you should commence your Lavenham lease extension today:

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

The value of Lavenham 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 escalate materialy once the unexpired lease term is less than 80 years

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

It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Lending institutions have set criteria when lending funds secured on leasehold homes. Many will simply refrain from lending at all once the remaining lease term slips beneath a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your Lavenham property.

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

The conveyancers that we work with undertake Lavenham 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 conveyancer we work with provide it.

Lavenham Lease Extension Case Studies:

Caleb, Lavenham, Suffolk

18 months ago Caleb, came perilously close to the eighty-year threshold with the lease on his purpose- built flat in Lavenham. In buying his home 19 years ago, the lease term was of no interest. Luckily, he became aware that he needed to take steps soon on Extending the lease. Caleb arranged for a lease extension just ahead of time last June. Caleb and the landlord ultimately agreed on a premium of £5,500 . If he not met the deadline, the figure would have become more costly by a minimum £1,025.

Lavenham case:

Ms Molly Petit took over the lease of a first floor flat in Lavenham in April 2011. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical premises in Lavenham with a long lease were valued about £264,000. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 28 May 2079. Given that there were 53 years left we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of professional charges.

Lavenham case:

Dr Aarav López completed a newly refurbished apartment in Lavenham in March 2001. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparable flats in Lavenham with an extended lease were worth £220,400. The average amount of ground rent was £45 billed per annum. The lease finished in 2090. Taking into account 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.