Why you should start your Nafferton lease extension

Why you should start your Nafferton lease extension today:

Increase your lease and increase your Nafferton property value

Unfortunately that a Nafferton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Nafferton property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Most leasehold owners in Nafferton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.

Lenders may decide not to finance a property on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Nafferton?

Irrespective of whether you are a tenant or a freeholder in Nafferton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nafferton valuers.

Nafferton Lease Extension Example Cases:

Omar, Nafferton, East Yorkshire

In recent months Omar, came very near to the eighty-year mark with the lease on his studio flat in Nafferton. In buying his property two decades ago, the unexpired term was of minimal concern. Thankfully, he recognised he needed to take steps soon on Extending the lease. Omar was able to extend his lease just under the wire in July. Omar and the landlord subsequently agreed on a premium of £5,000 . If the lease had gone to less than eighty years, the premium would have gone up by at least £1,050.

Nafferton case:

Dr H Leroy was assigned a lease of a recently refurbished apartment in Nafferton in January 2009. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparable premises in Nafferton with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 billed every twelve months. The lease concluded in 2105. Taking into account 79 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.

Nafferton case:

Last Summer we were phoned by Dr Lewis Nguyen , who moved into a studio apartment in Nafferton in November 2010. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Nafferton with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 collected every twelve months. The lease lapsed on 23 September 2085. Having 59 years left we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus professional charges.