Why you should start your Lyme Regis lease extension

Top reasons for lease extension now:

A Lyme Regis leasehold property depreciates with the years remaining on the lease.

Lyme Regis leases on residential deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Lyme Regis will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Lyme Regis with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Lenders do not lend on short residential leases. You are likely to encounter problems where you want to sell your flat in Lyme Regis if the unexpired lease term is under the criteria set by most banks and building societies. Different mortgage companies have varying requirements but generally theyrequire an unexpired term of at least seventy years.

Get in touch with one of our Lyme Regis lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you enhanced control over the value of your Lyme Regis leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Lyme Regis Lease Extension Example Cases:

Katie, Lyme Regis, Dorset,

In the wake of 6 months of protracted discussions with the landlord of her basement apartment in Lyme Regis, Katie initiated the lease extension process as the eighty year threshold was swiftly approaching. The lease extension was concluded in September 2005. The landlord’s costs were kept to an absolute minimum.

Lyme Regis case:

Mr Riley Torres bought a newly refurbished flat in Lyme Regis in July 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Lyme Regis with an extended lease were worth £220,400. The average ground rent payable was £45 billed annually. The lease came to a finish in 2090. Taking into account 64 years remaining we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including costs.

Lyme Regis case:

In 2014 we were approached by Mr A Robinson who, having purchased a garden flat in Lyme Regis in March 1997. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparable premises in Lyme Regis with an extended lease were in the region of £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease ran out in 2101. Considering the 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.