Main reasons to start your Luton lease extension

Why you should start your Luton lease extension today:

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

The only way is down when it comes to Luton lease terms. Luton leaseholds that have a remaining term lower than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will increase.

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

Leasehold properties in Luton with in excess of 100 years remaining on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and service charges justify it.

Lenders will not issue a mortgage on a short lease

Most mortgage lenders insist on a lengthy amount of time remaining on any leasehold property before they will consider lending on it. Even if you don't require a mortgage, you should keep in mind that it is reasonable to assume that someone intending to acquire your property in the future might well do, so in the event that they are unable to obtain a mortgage, then the financial worth of the property will likely suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to accept

What makes us experts in Luton lease extensions?

The lawyers that we work with undertake Luton 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.

Luton Lease Extension Example Cases:

Amber, Luton, Bedfordshire,

Subsequent to lengthy negotiations with the freeholder of her leasehold apartment in Luton, Amber commenced the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension was concluded in February 2011. The landlord’s charges were negotiated to approximately four hundred GBP.

Luton case:

In 2010 we were called by Mr and Mrs. T Moore who, having acquired a garden flat in Luton in October 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Identical flats in Luton with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed on 22 July 2089. Considering the 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of expenses.

Luton case:

Mr W Flores moved into a one bedroom apartment in Luton in April 2000. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable properties in Luton with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded in 2100. Taking into account 74 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.