Main reasons to start your Lowestoft lease extension

Why you should commence your Lowestoft lease extension today:

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

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Lowestoft have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Lowestoft lease extension. Postponing the costs today simply increases the price you will eventually have to pay for a lease extension.

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

Leasehold properties in Lowestoft with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.

Mortgage lenders will not finance a property with 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 become concerned at around 75 years. This will be problematic as and when you come to market or remortgage your flat as it will be practically unmortgageable. You might not have an imminent plan to sell but when you do your purchaser will need to hold off for a couple of years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Lowestoft?

The lawyers that we work with procure Lowestoft 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.

Lowestoft Lease Extension Case Studies:

Eliot, Lowestoft, Suffolk,

Eliot was the the leasehold proprietor of a conversion apartment in Lowestoft being marketed with a lease of just over fifty eight years remaining. Eliot informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Lowestoft case:

Mr and Mrs. P Nelson moved into a studio apartment in Lowestoft in July 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparative properties in Lowestoft with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed per annum. The lease terminated on 19 January 2097. Taking into account 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.

Lowestoft case:

Last Christmas we were contacted by Dr Charlotte Wilson , who was assigned a lease of a studio apartment in Lowestoft in August 1996. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Lowestoft with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 15 January 2086. Given that there were 60 years outstanding we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including legals.