Why you should start your Lyddington lease extension

Top reasons for lease extension now:

A Lyddington leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Lyddington is impacted by how many years 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 ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be addressed well before the 80 year mark. Leasehold Reform legislation enables Lyddington qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Lyddington with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may decide not to finance a property with a short lease

Many banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Lyddington property becoming difficult to sell or to obtain finance on.

What makes us experts in Lyddington lease extensions?

Using our service gives you enhanced control over the value of your Lyddington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Lyddington Lease Extension Case Studies:

Victoria, Lyddington, Rutland,

Following protracted correspondence with the freeholder of her first floor apartment in Lyddington, Victoria started the lease extension process just as her lease was approaching the critical 80-year mark. The lease extension completed in May 2013. The landlord’s charges were kept to an absolute minimum.

Lyddington case:

Last year we were contacted by Mr and Mrs. N Jackson , who moved into a one bedroom flat in Lyddington in September 2007. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Lyddington with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 6 September 2104. Having 78 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.

Lyddington case:

Mr and Mrs. P Gómez moved into a one bedroom flat in Lyddington in November 1997. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative flats in Lyddington with an extended lease were worth £191,000. The mid-range ground rent payable was £65 billed quarterly. The lease terminated in 2084. Considering the 58 years left we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus professional charges.