Why you should start your Northampton lease extension

Why you should start your Northampton lease extension today:

Increase your lease and increase your Northampton property value

The re-sale value of a leasehold property in Northampton depends on how many years the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the eighty year threshold. Current legislation enables Northampton qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Northampton with in excess of one hundred years unexpired 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions may not lend with a short lease

Banks and building societies do not lend on short residential leases. You most probably experience problems if you wish to sell your flat in Northampton if the remaining lease term is under the criteria set by most lenders. Different mortgage companies have different criteria but generally they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Northampton?

Using our service gives you increased control over the value of your Northampton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Northampton Lease Extension Example Cases:

Jasmine, Northampton, Northamptonshire,

In the wake of eight months of unsuccessful discussions with the landlord of her first floor apartment in Northampton, Jasmine initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work was concluded in March 2006. The freeholder’s fees were negotiated to approximately 450 pounds.

Northampton case:

In 2014 we were called by Ms O Moreau who, having bought a purpose-built flat in Northampton in September 2000. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Northampton with an extended lease were worth £295,000. The average ground rent payable was £45 invoiced quarterly. The lease termination date was on 27 July 2100. Taking into account 74 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.

Northampton case:

Last Summer we were e-mailed by Mrs Laura Vincent , who completed a one bedroom apartment in Northampton in February 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Northampton with a long lease were valued about £248,000. The average amount of ground rent was £65 invoiced annually. The lease ran out on 9 September 2089. Given that there were 63 years remaining we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus fees.