Why you should commence your Mulbarton lease extension

Main reasons to start your Mulbarton lease extension today:

Increase your lease and increase your Mulbarton property value

For those whose Mulbarton home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold properties in Mulbarton with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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

Nearly all mortgage companies insist on a lengthy amount of time remaining on any leasehold property before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be mindful that it is probable that someone wanting to buy your property in the future might well do, so where they can't obtain a mortgage, then the market price of your property could suffer. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are willing to lend on

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

Regardless of whether you are a tenant or a freeholder in Mulbarton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mulbarton valuers.

Mulbarton Lease Extension Case Studies:

Reuben, Mulbarton, Norfolk

18 months ago Reuben, came perilously near to the eighty-year threshold with the lease on his ground floor flat in Mulbarton. In buying his home 19 years ago, the length of the lease was of no concern. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Reuben extended the lease just under the wire in June. Reuben and the freeholder via the managing agents ultimately settled on sum of £6,000 . If the lease had slipped to less than eighty years, the figure would have increased by a minimum £900.

Mulbarton case:

Dr J Green completed a garden apartment in Mulbarton in November 2010. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical flats in Mulbarton with 100 year plus lease were valued about £193,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished in 2085. Having 59 years outstanding we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including professional charges.

Mulbarton case:

Mr C Miller acquired a recently refurbished flat in Mulbarton in November 2003. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Mulbarton with an extended lease were worth £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease lapsed on 2 September 2096. Taking into account 70 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.