Why you should commence your Longthorpe lease extension

Top reasons for lease extension now:

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

The market value of a leasehold property in Longthorpe is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that all matters can be addressed well before the eighty year mark. Current legislation enables Longthorpe qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not grant a mortgage on a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years unexpired - although this varies between mortgage companies. A purchaser will likely encounter difficulties in obtaining a mortgage and this will result in your Longthorpe property being difficult to sell or refinance.

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

The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.

Longthorpe Lease Extension Example Cases:

William, Longthorpe, Cambridgeshire

Last Summer William, came dangerously near to the 80-year threshold with the lease on his first floor apartment in Longthorpe. Having bought his home 18 years ago, the length of the lease was of minimal significance. Luckily, he realised he needed to take action soon on Extending the lease. William was able to extend his lease just under the wire last January. William and the freeholder via the management company ultimately settled on an amount of £5,000 . If the lease had slid lower than eighty years, the sum would have escalated by at least £900.

Longthorpe case:

In 2014 we were called by Mr and Mrs. J Ramírez who, having bought a one bedroom apartment in Longthorpe in November 1998. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative flats in Longthorpe with a long lease were valued around £257,800. The average ground rent payable was £65 invoiced quarterly. The lease finished on 3 February 2091. Considering the 65 years left we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including costs.

Longthorpe case:

Last March we were phoned by Mr Benjamin Dupont , who took over the lease of a one bedroom apartment in Longthorpe in November 2005. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative premises in Longthorpe with 100 year plus lease were valued around £191,400. The mid-range ground rent payable was £55 billed annually. The lease concluded in 2080. Taking into account 54 years remaining we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of fees.