Main reasons to start your Little Oakley lease extension

Main reasons to commence your Little Oakley lease extension today:

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

The value of Little Oakley 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 substantially once the unexpired lease term is below than 80 years

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

It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not issue a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies 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 longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a landlord in Little Oakley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Little Oakley valuers.

Little Oakley Lease Extension Example Cases:

Sebastian, Little Oakley, Northamptonshire,

Sebastian was the the leasehold proprietor of a 2 bedroom apartment in Little Oakley being marketed with a lease of a little over 72 years remaining. Sebastian on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

Little Oakley case:

Last October we were phoned by Ms Y Mason , who was assigned a lease of a one bedroom flat in Little Oakley in February 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Little Oakley with an extended lease were worth £248,000. The average amount of ground rent was £65 collected every twelve months. The lease elapsed in 2089. Taking into account 63 years remaining we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.

Little Oakley case:

Mr G Jones took over the lease of a garden apartment in Little Oakley in March 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Little Oakley with 100 year plus lease were valued around £181,600. The average amount of ground rent was £55 collected quarterly. The lease concluded in 2078. Taking into account 52 years left we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.