Why you should commence your Martlesham Heath lease extension

Top reasons for lease extension now:

A Martlesham Heath leasehold property depreciates with the years remaining on the lease.

The market value of Martlesham Heath leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years

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

Leasehold premises in Martlesham Heath 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 freehold unless savings on ground rent and service charges justify it.

Lending institutions may decide not to grant a mortgage with a short lease

Banks and Building Societies have specific criteria when lending monies secured on leasehold homes. Some will simply not lend at all once an unexpired lease term drops under a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below seventy years suitable security. As well as this being important when selling, it is also relevant where you are seeking to remortgage your Martlesham Heath property.

What makes us experts in Martlesham Heath lease extensions?

The conveyancers that we work with undertake Martlesham Heath 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 lawyer we work with provide it.

Martlesham Heath Lease Extension Example Cases:

Blake, Martlesham Heath, Suffolk,

Blake owned a studio flat in Martlesham Heath being marketed with a lease of fraction over fifty eight years left. Blake on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Martlesham Heath case:

In 2014 we were approached by Mrs Molly Bailey who, having moved into a first floor apartment in Martlesham Heath in July 2008. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical flats in Martlesham Heath with a long lease were worth £254,200. The average ground rent payable was £60 collected annually. The lease lapsed on 21 June 2077. Given that there were 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus fees.

Martlesham Heath case:

In 2014 we were e-mailed by Dr Andrew Mason who, having owned a first floor apartment in Martlesham Heath in November 2010. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable homes in Martlesham Heath with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended in 2088. Having 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.