Main reasons to start your Longthorpe lease extension

Why you should start your Longthorpe lease extension today:

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

Longthorpe leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher amount will be payable. Leasehold owners in Longthorpe will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some cases you may not be entitled. There are also strict deadlines and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.

Longthorpe property with a lease extension has roughly the same value as a freehold

Leasehold premises in Longthorpe with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may 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 mortgage lenders start to get nervous at around 75 years. This will be problematic once you need to sell or refinance your property as it will be effectively unmortgageable. Even though you might have no immediate desire to sell but when you do your purchaser must wait 2 years before they can exercise the right to a an extension to the lease.

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

The lawyers that we work with procure Longthorpe 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.

Longthorpe Lease Extension Example Cases:

Sian, Longthorpe, Cambridgeshire,

Subsequent to unsuccessful discussions with the landlord of her ground floor apartment in Longthorpe, Sian started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension completed in September 2006. The freeholder’s costs were kept to an absolute minimum.

Longthorpe case:

Mr William Adams acquired a ground floor flat in Longthorpe in March 1996. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical flats in Longthorpe with a long lease were worth £189,000. The average amount of ground rent was £55 billed quarterly. The lease ran out in 2079. Given that there were 53 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.

Longthorpe case:

Mr and Mrs. U Morel was assigned a lease of a one bedroom flat in Longthorpe in June 2007. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar flats in Longthorpe with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease termination date was in 2099. Taking into account 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.