Top reasons for Needham Market lease extension

Why you should commence your Needham Market lease extension today:

A Needham Market leasehold property depreciates with the years remaining on the lease.

For anyone whose Needham Market flat is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.

Needham Market property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Needham Market with over one hundred years left 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not lend with a short lease

Lenders will not lend on short residential leases. You are likely to experience problems if you wish to sell your flat in Needham Market if the remaining term of your lease is below the criteria set by the majority of lenders. Different lenders have different requirements but in the main theyrequire an unexpired term of at least seventy years.

What makes us experts in Needham Market lease extensions?

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

Needham Market Lease Extension Example Cases:

Joshua, Needham Market, Suffolk,

Joshua was the the leasehold owner of a studio flat in Needham Market on the market with a lease of just over 72 years remaining. Joshua informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree 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 payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert legal guidance and secured satisfactory deal informally and readily saleable.

Needham Market case:

In 2011 we were called by Ms B Williams who, having purchased a purpose-built flat in Needham Market in June 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Needham Market with a long lease were worth £250,400. The average amount of ground rent was £65 collected monthly. The lease ran out on 21 July 2090. Taking into account 64 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including costs.

Needham Market case:

Mr and Mrs. D Gunderson completed a studio apartment in Needham Market in July 2010. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar premises in Needham Market with an extended lease were valued around £189,000. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 27 July 2079. Considering the 53 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.