Why you should start your Loughborough lease extension

Main reasons to commence your Loughborough lease extension today:

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

Loughborough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Loughborough residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Loughborough you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

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

Leasehold premises in Loughborough with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

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

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get jittery at around 75 years. This will cause difficulties as and when you wish to dispose of or remortgage your flat as it will be practically unmortgageable. Even though you might not have an immediate plan 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.

What makes us experts in Loughborough lease extensions?

Lease extensions in Loughborough can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Loughborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Loughborough Lease Extension Example Cases:

Tyler, Loughborough, Leicestershire,

Tyler owned a 2 bedroom flat in Loughborough on the market with a lease of a few days over fifty eight years unexpired. Tyler on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler procured expert advice and secured an acceptable resolution without going to tribunal and sell the property.

Loughborough case:

In 2013 we were contacted by Dr Reuben Morris who, having took over the lease of a one bedroom flat in Loughborough in February 2010. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable homes in Loughborough with a long lease were in the region of £198,800. The average ground rent payable was £55 billed monthly. The lease lapsed on 18 October 2081. Having 55 years unexpired we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of fees.

Loughborough case:

Last month we were called by Mr and Mrs. C Morel , who owned a basement apartment in Loughborough in September 2011. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Loughborough with 100 year plus lease were valued about £295,000. The average ground rent payable was £45 invoiced per annum. The lease termination date was in 2101. Given that there were 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.