Main reasons to start your Little Oakley lease extension

Top reasons for lease extension now:

A Little Oakley lease depreciates with the years remaining on the lease.

The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Little Oakley may extend the lease for an additional ninety years under Leasehold Reform legislation. Do think carefully before delaying your Little Oakley lease extension. Postponing that expense now simply escalates the price you will eventually have to pay for a lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.

Lenders will not loan monies with a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Retaining our service gives you better control over the value of your Little Oakley leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Little Oakley Lease Extension Case Summaries:

Adam, Little Oakley, Northamptonshire,

Adam owned a conversion flat in Little Oakley on the market with a lease of a little over 72 years unexpired. Adam informally spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.

Little Oakley case:

In 2009 we were contacted by Mr and Mrs. W Young who, having owned a purpose-built apartment in Little Oakley in September 2003. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparable homes in Little Oakley with an extended lease were valued around £174,200. The average amount of ground rent was £55 billed yearly. The lease came to a finish in 2077. Taking into account 51 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.

Little Oakley case:

Last year we were phoned by Dr A Harris , who acquired a garden flat in Little Oakley in August 2007. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Little Oakley with a long lease were in the region of £285,000. The average amount of ground rent was £45 billed monthly. The lease ended in 2097. Given that there were 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.