Top reasons for North Cave lease extension

Why you should start your North Cave lease extension today:

A North Cave leasehold property depreciates with the years remaining on the lease.

North Cave leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in North Cave will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to grant a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become jittery at around 75 years. This will be problematic as and when you wish to dispose of or refinance your flat as it will be practically unmortgageable. You may have no imminent intention to sell but when you do your buyer must wait 2 years before being able to exercise the right to a an extension to the lease.

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

The conveyancing solicitors that we work with undertake North Cave 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.

North Cave Lease Extension Example Cases:

Kate, North Cave, East Yorkshire,

Following unsuccessful correspondence with the freeholder of her ground floor apartment in North Cave, Kate commenced the lease extension process as the eighty year mark was rapidly coming. The lease extension completed in March 2014. The freeholder’s fees were kept to an absolute minimum.

North Cave case:

Mrs J Harris was assigned a lease of a one bedroom apartment in North Cave in March 2002. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical premises in North Cave with a long lease were valued about £285,000. The average amount of ground rent was £55 billed quarterly. The lease finished in 2105. Having 79 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.

North Cave case:

Dr V Parker completed a recently refurbished apartment in North Cave in April 2011. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical properties in North Cave with an extended lease were valued around £193,400. The average ground rent payable was £65 invoiced monthly. The lease lapsed in 2085. Having 59 years left we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.