Why you should start your Lee On The Solent lease extension

Top reasons for lease extension now:

A Lee On The Solent lease depreciates with the years remaining on the lease.

With a residential leasehold property in Lee On The Solent, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Lee On The Solent with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.

Lee On The Solent property with a lease extension has roughly the same value as a freehold

Leasehold premises in Lee On The Solent with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not issue a mortgage with a short lease

Almost all banks and building societies will not lend on a lease with under 70 years left to run - although this varies from lender to lender. A buyer will likely find it difficult to obtain a mortgage and this will result in your Lee On The Solent property being difficult to dispose of or remortgage.

Get in touch with one of our Lee On The Solent lease extension solicitors or enfranchisement solicitors

The lawyers that we work with procure Lee On The Solent 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.

Lee On The Solent Lease Extension Case Studies:

Holly, Lee On The Solent, Hampshire,

Off the back of unsuccessful negotiations with the freeholder of her ground floor apartment in Lee On The Solent, Holly commenced the lease extension process just as her lease was nearing the critical eighty-year mark. The lease extension was concluded in November 2015. The landlord’s costs were kept to an absolute minimum.

Lee On The Solent case:

Last Spring we were e-mailed by Mr and Mrs. V González , who owned a one bedroom flat in Lee On The Solent in July 2008. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar properties in Lee On The Solent with a long lease were worth £280,000. The average amount of ground rent was £55 collected per annum. The lease expired in 2104. Having 78 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.

Lee On The Solent case:

Last Summer we were phoned by Dr Jasper Laurent , who took over the lease of a one bedroom flat in Lee On The Solent in July 2001. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparative residencies in Lee On The Solent with a long lease were in the region of £186,000. The mid-range amount of ground rent was £65 invoiced annually. The lease end date was in 2084. Taking into account 58 years unexpired we estimated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus legals.