Why you should start your Niton lease extension

Top reasons for lease extension now:

A Niton lease depreciates with the years remaining on the lease.

The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Niton may extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Niton lease extension. Postponing that expense now simply escalates the premium you will ultimately be required to pay for a lease extension.

Niton property with a lease extension is almost the same value as a freehold

Leasehold premises in Niton with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lenders will not loan monies with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Engaging our service will provide you better control over the value of your Niton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Niton Lease Extension Example Cases:

Mason, Niton, Isle Of Wight

Last year Mason, came very close to the eighty-year mark with the lease on his one bedroom apartment in Niton. In buying his property two decades ago, the lease term was of no bearing. Fortunately, he recognised he needed to take steps soon on Extending the lease. Mason extended the lease at the eleventh hour last July. Mason and the freeholder via the managing agents ultimately settled on sum of £5,000 . If he not met the deadline, the amount would have increased by a minimum £975.

Niton case:

In 2014 we were phoned by Dr Harrison Lee who, having purchased a one bedroom apartment in Niton in November 2004. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable flats in Niton with an extended lease were valued about £235,600. The average ground rent payable was £60 collected every twelve months. The lease concluded on 26 July 2088. Given that there were 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.

Niton case:

Last Autumn we were approach by Mr and Mrs. L François , who took over the lease of a first floor flat in Niton in April 1997. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical homes in Niton with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated in 2077. Having 51 years unexpired we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.