Top reasons for Lowestoft lease extension

Main reasons to start your Lowestoft lease extension today:

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

The market value of a leasehold property in Lowestoft is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded well before the 80 year threshold. Leasehold Reform legislation entitles Lowestoft qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold premises in Lowestoft with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Lending institutions may not lend on a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Regardless of whether you are a tenant or a freeholder in Lowestoft,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lowestoft valuers.

Lowestoft Lease Extension Case Studies:

Elijah, Lowestoft, Suffolk,

Elijah was the the leasehold proprietor of a conversion flat in Lowestoft being marketed with a lease of a few days over 61 years remaining. Elijah informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to invoke his statutory right. Elijah procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.

Lowestoft case:

In 2011 we were contacted by Dr Luca Murphy who, having bought a purpose-built flat in Lowestoft in June 2007. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical residencies in Lowestoft with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease concluded on 2 November 2085. Given that there were 59 years as a residual term we approximated the premium to the landlord to extend the lease to be between £27,600 and £31,800 plus fees.

Lowestoft case:

Ms P Morgan bought a newly refurbished apartment in Lowestoft in March 1998. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative residencies in Lowestoft with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease came to a finish in 2105. Given that there were 79 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.