Main reasons to start your Melbourn lease extension

Why you should start your Melbourn lease extension today:

Increase your lease and increase your Melbourn property value

The closer a domestic lease in Melbourn gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Melbourn will qualify for this right; nevertheless a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Mortgage lenders may decide not to grant a mortgage with a short lease

Many mortgage companies require a lengthy amount of time remaining on a leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should bear in mind that it is likely that someone intending to buy your property in the future might well do, so where they are not able to obtain a mortgage, then the financial worth of the property could be adversely impacted. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

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

The conveyancing solicitors that we work with undertake Melbourn 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.

Melbourn Lease Extension Case Studies:

Gemma, Melbourn, Cambridgeshire,

Trailing protracted negotiations with the landlord of her basement apartment in Melbourn, Gemma started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The lease extension was finalised in November 2010. The landlord’s fees were restricted to slightly above 450 pounds.

Melbourn case:

In 2013 we were contacted by Mrs W Patel who, having purchased a studio flat in Melbourn in May 2008. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Melbourn with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed on 12 August 2081. Considering the 55 years remaining we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.

Melbourn case:

In 2014 we were contacted by Mr G López who, having took over the lease of a basement flat in Melbourn in October 1997. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative properties in Melbourn with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed on 20 October 2092. Considering the 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.