Why you should commence your Longford lease extension

Top reasons for lease extension now:

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

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Longford. Inevitably, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Longford have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful deliberation before delaying your Longford lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease

An extended lease has roughly the same value as a freehold

Leasehold properties in Longford with over one hundred years unexpired 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 freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not loan monies on a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold homes. Some will simply refuse lend at all once an unexpired lease term slips under a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Longford property.

Why use us for your lease extension in Longford?

The conveyancers that we work with undertake Longford 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 lawyer we work with provide it.

Longford Lease Extension Case Studies:

Sebastian, Longford, West London

Twenty four months ago Sebastian, came seriously close to the eighty-year mark with the lease on his ground floor flat in Longford. In buying his home two decades ago, the unexpired term was of no concern. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Sebastian extended the lease just under the wire last June. Sebastian and the landlord ultimately settled on an amount of £5,500 . If the lease had fallen below 80 years, the price would have become more costly by a minimum £1,000.

Longford case:

Last Winter we were called by Ms Ellie Howard , who bought a studio apartment in Longford in August 2001. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar flats in Longford with a long lease were worth £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease finished on 21 June 2089. Given that there were 63 years as a residual term we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus costs.