Why you should commence your Newport Pagnell lease extension

Top reasons for lease extension now:

A Newport Pagnell leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Newport Pagnell depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Newport Pagnell qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to loan monies with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Newport Pagnell lease extensions?

The lawyers that we work with procure Newport Pagnell 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 conveyancer we work with provide it.

Newport Pagnell Lease Extension Case Studies:

Andrew, Newport Pagnell, Buckinghamshire

Last Summer Andrew, came critically close to the 80-year threshold with the lease on his one bedroom flat in Newport Pagnell. In buying his home 19 years ago, the unexpired term was of little concern. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Andrew extended the lease just in the nick of time last May. Andrew and the landlord who owned the flat above eventually settled on an amount of £6,000 . If he not met the deadline, the premium would have increased by at least £850.

Newport Pagnell case:

Mr U Lewis moved into a one bedroom apartment in Newport Pagnell in March 2005. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical properties in Newport Pagnell with a long lease were valued around £242,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed in 2093. Taking into account 67 years outstanding we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including fees.

Newport Pagnell case:

Last Autumn we were contacted by Mr and Mrs. L Hernández , who completed a ground floor apartment in Newport Pagnell in May 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Newport Pagnell with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease elapsed on 22 October 2104. Taking into account 78 years unexpired we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.