Main reasons to commence your Long Sutton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Long Sutton property value

When it comes to long leasehold premises in Long Sutton, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years left. Anyone in Long Sutton with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has under 80 years remaining, under the relevant statute the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.

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

It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions will not loan monies on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This may be problematic as and when you need to market or refinance your property as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your purchaser will need to wait 2 years before being able to start the legal procedures for an extension to the lease.

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

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

Long Sutton Lease Extension Example Cases:

Paige, Long Sutton, Lincolnshire,

After unsuccessful correspondence with the landlord of her two bedroom apartment in Long Sutton, Paige commenced the lease extension process as the 80 year mark was fast advancing. The legal work was concluded in August 2011. The freeholder’s costs were kept to an absolute minimum.

Long Sutton case:

Mrs G Gray owned a basement flat in Long Sutton in October 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Long Sutton with a long lease were in the region of £198,800. The average amount of ground rent was £55 billed monthly. The lease end date was on 26 October 2081. Taking into account 55 years unexpired we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.

Long Sutton case:

Mr and Mrs. O Robinson acquired a studio flat in Long Sutton in January 2002. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative flats in Long Sutton with an extended lease were valued around £295,000. The average amount of ground rent was £45 billed monthly. The lease elapsed in 2101. Taking into account 75 years outstanding we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.