Why you should start your Luton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Luton property value

Luton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Luton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Luton you must see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Luton leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay

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

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to grant a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get jittery at around 75 years. This may cause difficulties once you wish to dispose of or remortgage your flat as it will be effectively unmortgageable. You may not have an immediate desire to sell but when you do your buyer will have to wait a couple of years before being able to exercise the right to a an extension to the lease.

What makes us experts in Luton lease extensions?

Retaining our service will provide you increased control over the value of your Luton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Luton Lease Extension Case Studies:

Edward, Luton, Bedfordshire,

Edward owned a studio flat in Luton being sold with a lease of just over fifty eight years unexpired. Edward on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Edward to invoke his statutory right. Edward obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.

Luton case:

In 2012 we were phoned by Mr and Mrs. O Bertrand who, having acquired a recently refurbished flat in Luton in January 2012. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable residencies in Luton with a long lease were in the region of £237,600. The mid-range ground rent payable was £45 invoiced per annum. The lease termination date was on 6 January 2093. Taking into account 67 years as a residual term we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus fees.

Luton case:

Dr Morgan López bought a newly refurbished apartment in Luton in January 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical properties in Luton with an extended lease were valued around £280,000. The average ground rent payable was £55 billed every twelve months. The lease ran out on 7 May 2104. Given that there were 78 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.