Main reasons to start your Luton lease extension

Why you should start your Luton lease extension today:

Increase your lease and increase your Luton property value

The market value of Luton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is less than eighty years

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

Leasehold premises in Luton with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to lend with a short lease

Nearly all mortgage lenders insist on a lengthy amount of time left on any leasehold property before they will consider lending on it. Even if you don't require a mortgage, you should bear in mind that it is likely that someone intending to acquire your property in the future might well do, so where they can't get a mortgage, then the value of the property will likely suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in Luton?

Engaging our service gives you enhanced control over the value of your Luton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Luton Lease Extension Example Cases:

Jennifer, Luton, Bedfordshire,

Subsequent to unsuccessful discussions with the freeholder of her ground floor apartment in Luton, Jennifer started the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction was finalised in November 2009. The freeholder’s fees were restricted to a tad over 600 GBP.

Luton case:

In 2009 we were e-mailed by Dr Daniel Anderson who, having took over the lease of a first floor flat in Luton in May 2004. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Similar homes in Luton with an extended lease were valued around £168,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended in 2081. Having 55 years left we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.

Luton case:

Last April we were approach by Mr and Mrs. A Hernández , who was assigned a lease of a one bedroom flat in Luton in February 2008. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Luton with a long lease were valued around £235,200. The average ground rent payable was £45 invoiced annually. The lease ended on 16 August 2092. Taking into account 66 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.