Top reasons for Lyndhurst lease extension

Why you should commence your Lyndhurst lease extension today:

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

The re-sale value of a leasehold property in Lyndhurst depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be addressed prior to the eighty year mark. Current legislation enables Lyndhurst qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Lyndhurst with over 100 years remaining 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 service charges merit it.

Lending institutions will not lend with a short lease

Lenders are really clamping down as regards to homes in Lyndhurst with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash buyer, or try your luck at auction thus restricting your market.

What makes us experts in Lyndhurst lease extensions?

The conveyancing solicitors that we work with undertake Lyndhurst 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 conveyancer we work with provide it.

Lyndhurst Lease Extension Example Cases:

Maisie, Lyndhurst, Hampshire,

Following lengthy discussions with the freeholder of her studio flat in Lyndhurst, Maisie initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in October 2006. The freeholder’s costs were negotiated to under 550 GBP.

Lyndhurst case:

In 2014 we were called by Mr Oliver Sharif who, having owned a studio flat in Lyndhurst in July 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Lyndhurst with a long lease were valued around £174,200. The mid-range amount of ground rent was £55 collected annually. The lease terminated in 2077. Considering the 51 years outstanding we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.

Lyndhurst case:

Dr D Martin acquired a one bedroom flat in Lyndhurst in October 2006. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical residencies in Lyndhurst with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced yearly. The lease concluded on 11 January 2097. Considering the 71 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.