Main reasons to start your Luton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Luton property value

There is no doubt about it a leasehold property in Luton is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Luton will qualify for this right; that being said a lawyer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

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

Leasehold properties in Luton with more than one hundred 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies will not finance a property with a short lease

Mortgage lenders have set criteria when lending monies charged on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below seventy years suitable security. As well as impacting your ability to sell, it is also relevant where you are wanting to refinance your Luton home.

Why use us for your lease extension in Luton?

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

Luton Lease Extension Example Cases:

Ollie, Luton, Bedfordshire

Half a year ago Ollie, came critically close to the eighty-year mark with the lease on his two bedroom apartment in Luton. Having purchased his flat twenty years ago, the length of the lease was of little concern. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Ollie extended the lease just in the nick of time in April. Ollie and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £1,025.

Luton case:

In 2013 we were e-mailed by Mr and Mrs. P Davies who, having moved into a first floor flat in Luton in March 2007. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable properties in Luton with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease expiry date was on 3 January 2085. Taking into account 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.

Luton case:

In 2012 we were e-mailed by Dr Kai Morel who, having moved into a basement apartment in Luton in November 1995. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Luton with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2096. Given that there were 70 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.