Why you should start your Limbury lease extension

Top reasons for lease extension now:

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

When it comes to domestic leasehold premises in Limbury, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Limbury with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has less than eighty years left, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.

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

It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.

Lenders will not loan monies on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Limbury lease extensions?

Irrespective of whether you are a tenant or a landlord in Limbury,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Limbury valuers.

Limbury Lease Extension Case Summaries:

Arthur, Limbury, Bedfordshire,

Arthur was the the leasehold owner of a studio apartment in Limbury being marketed with a lease of fraction over 59 years outstanding. Arthur informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and secured satisfactory resolution informally and readily saleable.

Limbury case:

Mr and Mrs. C Howard bought a garden flat in Limbury in February 2003. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Limbury with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced per annum. The lease expired on 5 June 2097. Given that there were 71 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.

Limbury case:

In 2012 we were approached by Mrs Poppy Morel who, having bought a ground floor apartment in Limbury in March 2004. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar homes in Limbury with 100 year plus lease were worth £246,800. The average ground rent payable was £60 collected monthly. The lease concluded on 13 October 2076. Having 50 years left we estimated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus fees.